Cryptocurrency / Virtual Digital Asset Fraud Investigation Checklist
CRYPTOCURRENCY / VIRTUAL DIGITAL ASSET FRAUD INVESTIGATION CHECKLIST
Entity / individual: {{client_name}} · Period: {{investigation_period}}
Scope: {{engagement_scope}}
This checklist covers the accounting/forensic-review procedures a CA can reasonably perform in a suspected virtual digital asset (VDA) fraud or misappropriation matter. On-chain wallet forensics beyond basic public-ledger tracing, and any recovery action, are specialist and legal functions respectively — this checklist identifies where those handoffs occur rather than covering them.
A. Identification of Assets and Wallets
List every wallet address, exchange account, and custodial holding known or suspected to be connected to the entity/individual — including cold storage and any wallets held in an employee/related party's name for entity business.
| Wallet / account | Type (self-custody / exchange / custodial) | Chain / asset | Known owner / controller | Status (active/closed/unknown) |
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B. Basic Public-Ledger Tracing
For public/transparent-ledger assets (e.g. Bitcoin, Ethereum), basic tracing — following a transaction from a known wallet forward or backward through the public blockchain explorer — can be performed without specialist tools for a limited number of hops. Beyond that, or where mixing services/privacy coins are involved, engage a specialist blockchain forensics firm; note the point at which tracing was handed off and to whom: ____________________________________________
C. Exchange KYC and Transaction Record Requests
Indian and foreign exchanges hold KYC (identity verification) and transaction records for accounts. Requests for this information typically require a legal process (e.g. through law enforcement, a court order, or the exchange's own compliance/legal request process) rather than a simple ask — document what was requested, from which exchange, through what process, and the outcome.
| Exchange | Information requested | Request route (LEA / court order / compliance portal) | Date requested | Response received? |
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D. Loss Quantification — Valuation at Date of Transaction
For each identified misappropriation/loss transaction, value the VDA in INR at the price prevailing at the date and (where material and available) approximate time of the transaction, using a reputable exchange's historical price data — state the source used. This mirrors how VDA transfers are valued for Sec 115BBH tax purposes and gives a defensible, consistently-applied basis for the loss figure.
| Transaction date | Asset | Quantity | INR value at transaction date | Valuation source |
|---|
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E. Conclusion and Handoff
Summary of findings within the scope of this checklist, and identification of any matter referred to a specialist (blockchain forensics firm, law enforcement, legal counsel) for further action: ____________________________________________
This document sets out findings and procedures performed within the scope stated above. It is not a legal opinion, does not constitute a finding of civil or criminal liability, and is not a substitute for legal advice. Any decision to pursue disciplinary action, civil recovery, or criminal prosecution is a separate process, outside the scope of this engagement, to be taken on the advice of legal counsel.
Prepared by: ______________ Date: 31 July 2026
Reviewed by: ______________ Date: ______________
