The Key Benefit of B.A.T.S.
Standardized Documentation = Reproducible Results
Any investigator following the B.A.T.S. methodology will arrive at the same conclusions, creating legally defensible evidence that withstands scrutiny and enables successful asset forfeiture.
What is B.A.T.S.?
The Block Audit Tracing Standard (B.A.T.S.) is a revolutionary framework for cryptocurrency investigation that transforms blockchain analysis from an art into a science. It provides the mathematical certainty required for successful asset forfeiture cases.
Core Principles:
- Mathematical Precision - Every dollar accounted for
- Standardized Process - Consistent methodology across all cases
- Legal Compliance - Meets court requirements for asset forfeiture
- Scope Control - Prevents investigation creep
- Complete Documentation - Full audit trail for legal review
Remember: B.A.T.S. ensures that two different investigators analyzing the same case will reach identical conclusions, providing the reproducibility that courts demand.
The B.A.T.S. Methodology
Step 1: Establish Root Total
Document all victim losses to create your mathematical baseline. This becomes your Adjusted Root Total (ART) after any justified write-offs.
Step 2: Apply V-T-H Notation
Assign unique identifiers to every transaction maintaining clear lineage from victims.
Step 3: Classify Wallets by Color
Assign permanent colors based on wallet function, not ownership assumptions.
Step 4: Validate at Each Hop
Ensure all thread totals at each hop level sum to your ART. This mathematical validation proves completeness.
Step 5: Document Terminal Points
Identify where funds reach exchanges (PURPLE) or cold storage (BLUE) for legal process or monitoring.
Understanding V-T-H Notation
The Formula: V[#]-T[#]-H[#]
- V = Victim number (V1, V2, V3...)
- T = Transaction number (T1, T2, T3...)
- H = Hop count from victim (H1, H2, H3...)
Practical Examples:
| Notation | Meaning |
|---|---|
| V1-T1 | First victim's first transaction (at RED wallet) |
| V1-T1-H1 | One hop away from victim's transaction |
| V2-T3-H5 | Second victim's third transaction, five hops away |
Why This Matters: V-T-H notation creates an unambiguous audit trail that any investigator can follow, ensuring reproducible results.
Wallet Color Classification
RED Wallets
Definition: Victim-facing wallets
Rule: First wallet to receive victim funds
Example: Scammer's receiving address
YELLOW Wallets
Definition: Convergence/hub wallets
Rule: Where multiple victim traces meet
Example: Criminal consolidation wallet
PURPLE Wallets
Definition: Exchange deposit addresses
Rule: Known VASP/exchange wallets
Example: Binance deposit address
BLUE Wallets
Definition: Cold storage wallets
Rule: Long-term holding addresses
Example: Criminal savings wallet
BLACK Wallets
Definition: Standard intermediary
Rule: Default for unclassified
Example: Pass-through addresses
Remember
Colors are permanent!
Once assigned, never change
Based on function, not ownership
The Golden Thread Principle
Definition
The unbroken connection between a victim's original funds and any assets ultimately seized by law enforcement. This principle is essential for proving in court that specific seized cryptocurrency originated from criminal activity.
The PIFO Method (Proceeds In First Out)
When traced funds enter a wallet, the very next outbound transaction contains those funds. Apply this strictly chronologically to maintain the golden thread through commingled funds.
Wallet has 5 BTC existing balance
Victim sends 2 BTC (our traced funds)
Next transaction out is 3 BTC
We trace 2 BTC of that 3 BTC transaction
Breaking the Thread
The golden thread breaks if you cannot mathematically prove the connection. Common breaks: mixers, privacy coins, or poor documentation. Document these as write-offs.
Quick Reference Guide
B.A.T.S. Checklist
- ☐ Document all victim transactions
- ☐ Calculate and confirm root total
- ☐ Apply V-T-H notation consistently
- ☐ Classify wallets by color (permanent!)
- ☐ Validate totals at each hop level
- ☐ Document all write-offs with justification
- ☐ Identify terminal wallets (PURPLE/BLUE)
- ☐ Export comprehensive report
Key Terms
- ART
- Adjusted Root Total (after write-offs)
- Thread Total
- Amount being traced at specific hop
- Convergence
- Multiple traces meeting at one wallet
- Write-off
- Documented abandonment of trace
- Terminal Wallet
- Exchange or cold storage endpoint
Always Remember
Standardized Process = Reproducible Results = Successful Forfeiture
Ready to Begin?
Now that you understand the B.A.T.S. methodology, start your investigation with confidence!
Investigation Details
Investigation Progress
Document All Victim Transactions
Enter ALL transactions where victims sent assets to scammer-controlled wallets. This creates the foundation for your entire investigation.
- Transaction hash
- Amount & currency
- Date & time (UTC)
- Receiving (RED) wallet
- Use API lookup to auto-fill
- Paste multiple hashes at once
- V-T notation auto-assigns
- Save regularly (.bats file)
About the Universal Wallet Index
This index catalogs all wallets involved in your investigation with their permanent classifications. Use this to:
- Maintain consistent wallet identification across your investigation
- Document wallet classifications per BATP color system
- Add notes about wallet behavior, exchange identifications, or other findings
- Provide technical appendix for legal proceedings
Ready to Begin Tracing?
Now that you understand your wallet classifications, start documenting the cryptocurrency trace through hops.
Investigation Dashboard
Adjusted Root Total (ART) by Currency
Quick Navigation
Visualize Your Investigation
Create a visual flow diagram of your cryptocurrency trace to better understand fund movement patterns.
Complete Your Investigation
Review your investigation summary and export your final B.A.T.S. report for legal proceedings.
Investigation Complete!
Congratulations! You have successfully completed your B.A.T.S. cryptocurrency investigation. Your report is ready for legal proceedings and regulatory compliance.
Remember to save your investigation file regularly and keep backup copies of all exported reports.