WallsecEducational explainer

How money moves

A bank transfer and an onchain transfer, side by side

Press a send button below and watch what each system records. The difference in what is written down is the reason cryptocurrency cases need forensic tracing.

John Carter

Acct •••• 4417 · Verified customer

Identity on record

£100

Banking network · named rails

Mary Ellis

Acct •••• 8802 · Verified customer

Identity on record

  1. 1John signs in to his bank — identity already verified (KYC).
  2. 2Bank debits John's account and records his name, address and account number.
  3. 3Payment is routed through the banking network with both parties named.
  4. 4Mary's bank credits her account. A named, reversible, auditable record exists.
Ready.

What the bank knows

  • Legal names of both parties
  • Verified addresses and ID documents
  • A regulated institution you can write to
  • Payments can sometimes be recalled or frozen

What the network knows

  • Two addresses — no names attached
  • The amount, the time, and the fee
  • No sign-up, no ID, no central operator
  • Confirmed transfers cannot be reversed

Pseudonymous is not the same as untraceable

Every onchain movement is permanently public. Nobody's name is written on it, but the path is. Forensic work follows that path across wallets, bridges and services until funds reach a regulated business that does hold identity records — and that is the point where a structured evidence report becomes useful to exchanges, banks and law enforcement.

Illustrative example only. Names, wallet addresses and amounts are fictional and shown for explanation. Wallsec does not guarantee any particular outcome in an individual case.