Cryptocurrency Transaction Auditing Flashcards
7 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Cryptocurrency Transaction Auditing flashcards as text
Which on-chain metric best indicates a transaction is part of a 'peel chain' technique used to obscure fund origins?
Answer: A series of transactions where each has one input and one output with decreasing amounts
A peel chain involves peeling off small amounts across sequential one-in-one-out transactions, gradually reducing the main UTXO to evade tracing.
When auditing a DeFi protocol, which event log field is most critical for reconstructing the exact token swap amounts in an AMM transaction?
Answer: The Swap event's amount0In, amount0Out, amount1In, amount1Out fields
AMM Swap events emit exact input and output token amounts for each side, making them the authoritative source for reconstructing swap economics.
A CCA auditor notices a Bitcoin transaction with hundreds of inputs from different addresses consolidating into one output. What AML concern does this most likely indicate?
Answer: CoinJoin mixing to obfuscate fund origins
CoinJoin transactions consolidate inputs from multiple parties to break the transaction graph link between inputs and outputs, a common mixing technique.
Under FATF Travel Rule requirements, what minimum threshold triggers the obligation for VASPs to transmit originator and beneficiary information?
Answer: $1,000 USD or equivalent
FATF Recommendation 16 sets the Travel Rule threshold at USD/EUR 1,000 for virtual asset transfers between VASPs.
An auditor is tracing funds through a cross-chain bridge. Which characteristic of bridge transactions makes attribution most challenging?
Answer: Lock-and-mint mechanisms break the direct on-chain link between source and destination chains
Lock-and-mint bridges lock assets on the source chain and mint wrapped tokens on the destination chain, creating two separate on-chain records with no direct cryptographic link.
Which method is most effective for identifying address clusters belonging to the same entity on the Bitcoin network?
Answer: Common input ownership heuristic (co-spending analysis)
The common input ownership heuristic assumes all input addresses in a transaction are controlled by the same entity, enabling address clustering.
When reviewing Ethereum internal transactions (traces), what scenario requires an auditor to examine traces rather than top-level transactions?
Answer: Detecting ETH transfers triggered by smart contract logic, not direct EOA sends
Internal transactions are ETH or token movements initiated by smart contract execution and do not appear in the standard transaction list, only in execution traces.