CCI Digital Asset Seizure and Recovery 2

Question 1

What is a seed phrase (recovery phrase) and why is it critical in cryptocurrency seizures?

Accepted Answer

A 12-24 word mnemonic that can fully restore a cryptocurrency wallet, granting complete access to all associated funds

Answer

A BIP-39 seed phrase can fully restore any compatible cryptocurrency wallet on any device, giving whoever possesses it complete control over all associated funds.

Question 2

During a search warrant execution at a suspect's residence, investigators find a piece of paper with 24 words written in sequence. What is this most likely?

Accepted Answer

A BIP-39 cryptocurrency wallet seed phrase (mnemonic recovery phrase)

Answer

A 24-word sequence found during a search is almost certainly a BIP-39 mnemonic seed phrase, which can be used to recover and access a cryptocurrency wallet.

Question 3

What technique involves compelling a suspect to surrender cryptocurrency private keys, and what US constitutional challenge does it face?

Accepted Answer

Compelled decryption; faces Fifth Amendment self-incrimination challenges

Answer

Compelling a suspect to surrender private keys (compelled decryption) faces Fifth Amendment challenges because it may constitute compelled testimonial self-incrimination.

Question 4

What is the key difference between criminal forfeiture and civil forfeiture in cryptocurrency cases?

Accepted Answer

Criminal forfeiture requires a criminal conviction; civil forfeiture is an action against the property itself and does not require one

Answer

Criminal forfeiture requires a guilty verdict or plea before property is permanently seized, while civil forfeiture is an in rem action against the asset that can proceed without a conviction.

Question 5

When law enforcement seizes a cryptocurrency hardware wallet but does not know the PIN, what legal options exist?

Accepted Answer

Seeking a court order compelling the suspect to disclose the PIN or using authorized forensic techniques to extract it

Answer

Investigators may pursue compelled disclosure orders through the courts or employ authorized forensic techniques to extract the PIN, subject to applicable constitutional constraints.

CCI - Certified Cryptocurrency Investigator Practice Test

CCI - Certified Cryptocurrency Investigator Practice Test

CCI Digital Asset Seizure and Recovery 2