With more individuals and companies investing and exposed to crypto-assets than ever before, the incidence of fraud, mismanagement, and risks of misappropriation increase.

The increase in crypto-asset and stablecoin litigation provides a rare opportunity for practitioners to gain an additional capability to serve a wider range of customers.

This course aims to equip accountants, auditors and anyone who deals with asset-tracking and seizure with the skills needed to conduct crypto-asset and stablecoin tracing, investigate incidences of misappropriation of crypto-assets held by corporate treasuries, and evaluate companies with crypto-assets and/or stablecoins on their balance sheets.

On the completion of this course, you will be able to:

• Understand how crypto-assets and stablecoins can be seized or frozen
• Perform independent crypto-asset or stablecoin tracking and tracing
• Prepare crypto-asset and stablecoin tracking reports for use in legal proceedings
• Apply professional ethics principles in crypto-asset forensic investigations
• Comply with AML/CFT requirements when conducting crypto-asset investigations

Programme Outline

Module 1: Introduction to Crypto-Asset Transactions

• How do crypto-asset transactions work?
• Understanding blockchain fundamentals
• Types of crypto-assets: tokens, coins, and stablecoins
• Transaction anatomy and verification

Module 2: Basics of Blockchain Transaction Tracing

• How do we trace blockchain transactions?
• How can you identify related parties?
• What are crypto-asset mixers and how do they work?
• Limitations of tracing through mixers
• What information can you request from a crypto-asset service provider (e.g., exchange) as part of your investigations?
• Legal frameworks for information requests

Module 3: Advanced Blockchain Transaction Tracing and Attribution

• Introduction to decentralized finance (DeFi)
• What are smart contracts?
• How can you establish someone's control over a smart contract?
• How do you prove common ownership of smart contracts?
• Cross-chain tracing and bridging mechanisms
• Emerging role of AI in blockchain forensics and pattern detection

Module 4: Real-Life Case Studies

• Case Study 1: Tracing a Misappropriated Crypto-Asset
  • Learn practical steps for tracing digital funds in cases of misappropriation where a venture capital firm invested in a startup using stablecoins that were misappropriated by one of the startup's founders.
• Case Study 2: How to Create $1.4 Billion Out of Thin Air
  • Examine how a crypto-asset exchange "manufactured" $1.4 billion worth of free stablecoins impacting market prices and distorting the value of other crypto-assets.

Module 5: Professional Ethics in Crypto-Asset Forensics

Part A: The Five Fundamental Principles (EP100)

• Integrity in crypto-asset forensic engagements
  • Application in crypto-asset investigations: accurate, complete, and unbiased reporting of investigative findings
  • Hands-on Exercise: Scenario analysis on reporting conflicts, pressure, and interpretation disputes
• Independence and objectivity challenges in blockchain investigations
  • Application: maintaining independence when investigating parties with business relationships
  • Hands-on Exercise: Identifying and evaluating conflicts of interest in crypto investigations
• Professional Competence and due care in technically complex crypto investigations
  • Application: recognising technical limitations, scope constraints, and when specialist expertise is required
  • Hands-on Exercise: Case discussion on scope limitations and when to engage specialists
• Confidentiality considerations involving digital assets and transaction data
  • Application: handling sensitive wallet, transaction, and investigative information within professional and legal boundaries
  • Hands-on Exercise: Managing confidentiality obligations versus legal or regulatory disclosure duties 5. Professional conduct in emerging technology and forensic contexts
  • Application: responsible representation of expertise, conclusions, and professional responsibilities Hands-on Exercise: Ethical dilemmas in client and multi-party situations

Part B: AML/CFT Requirements for Crypto-Asset Investigations (EP200)

• Overview of EP200 Requirements
  • Singapore's AML/CFT regulatory framework
  • FATF recommendations and their application to professional accountants
  • Accountants (Prevention of Money Laundering and Financing of Terrorism) Rules 2023
• Risk-Based Approach in Crypto-Asset Investigations
  • Assessing ML/TF risks in crypto-asset transactions
  • Enhanced due diligence for high-risk scenarios
  • Red flags specific to crypto-assets: mixers, privacy coins, layering
  • Hands-on Exercise: Risk assessment of sample crypto-asset transactions
• Suspicious Transaction Reporting
  • Obligations to report to the Suspicious Transaction Reporting Office (STRO)
  • Indicators of suspicious crypto-asset activities
  • Tipping-off prohibitions and their implications
  • Case Study: When and how to file STRs in crypto-asset investigations
• Record Keeping and Documentation
  • Documentation requirements for crypto-asset transactions
  • Retention periods and data security considerations
  • Best practices for maintaining audit trails of blockchain investigations
• Internal Policies, Procedures, and Controls (IPPC)
  • Establishing firm-wide AML/CFT controls for crypto-asset work
  • Staff training and awareness on crypto-asset ML/TF risks
  • Hands-on Exercise: Developing an AML checklist for crypto-asset forensics engagements

Training Methodology

Workshop style with case studies and live demos

Closing Date for Registration 

1 Week before Programme or Until Full Enrolment.  

Intended For

The course is intended for:

• accountants;
• auditors;
• financial forensic professionals;
• lawyers and legal professionals;
• law enforcement officers; and
• professionals involved in asset-tracing and seizures.

No prior blockchain or crypto-asset knowledge is required.

Competency Mapping

Category 2 = 2.00 Hours
Category 5 = 5.00 Hours

Programme Facilitator(s)