CCI Smart Contracts and DeFi Investigations 3

Question 1

What does MEV (Maximal Extractable Value) refer to in blockchain?

Accepted Answer

Profit extracted by validators by reordering, inserting, or censoring transactions within blocks

Answer

The maximum amount of cryptocurrency that can be mined per day per miner

Answer

The maximum transaction fee a user is permitted to set on a network

Answer

The total market capitalization of all Ethereum-based tokens

Question 2

What is a blockchain bridge and why is it significant for cryptocurrency investigations?

Accepted Answer

A protocol enabling asset transfers between different blockchains, creating cross-chain tracing gaps

Answer

A physical network connection between geographically distributed blockchain servers

Answer

A type of smart contract used exclusively for token creation and distribution

Answer

A government-approved inter-exchange cryptocurrency transfer service

Question 3

In blockchain, what is an oracle and what risk does it pose for DeFi protocols?

Accepted Answer

A service that provides external real-world data to smart contracts, which can be manipulated

Answer

A type of hardware wallet that predicts future cryptocurrency price movements

Answer

An expert witness used in cryptocurrency-related court proceedings

Answer

A specialized blockchain validator node that processes high-priority requests

Question 4

What is a DAO (Decentralized Autonomous Organization) and how can it be relevant to cryptocurrency investigations?

Accepted Answer

An organization governed by smart contracts and token-holder votes, which can be exploited for financial crimes

Answer

A government body established to regulate cryptocurrency exchanges and stablecoins

Answer

A type of non-fungible token marketplace operating without a central authority

Answer

A centralized fund management service that uses blockchain for record-keeping

Question 5

What is front-running in the context of DeFi transactions?

Accepted Answer

Inserting a transaction ahead of a known pending transaction by paying higher gas fees to profit from anticipated price impact

Answer

Executing trades before a traditional financial market opens for the day

Answer

Submitting fraudulent duplicate transactions before they are verified by the network

Answer

Mining blocks ahead of the main chain to gain block rewards

Question 6

Why is smart contract bytecode analysis important for cryptocurrency investigators?

Accepted Answer

Bytecode reveals deployed code logic and functionality even when human-readable source code is not publicly verified

Answer

Bytecode reveals the wallet addresses and identities of all users who interacted with the contract

Answer

Bytecode contains the private keys of the contract creator in an encoded format

Answer

Bytecode analysis can be used to legally reverse or invalidate blockchain transactions

Question 7

What is a wrapped token (e.g., WBTC) in cryptocurrency, and why is it relevant to investigations?

Accepted Answer

A token pegged to another cryptocurrency and usable on a different blockchain, enabling cross-chain fund movement

Answer

A token that has been legally frozen by a law enforcement agency's blockchain order

Answer

A privacy-enhanced token that obscures transaction details from chain analysis tools

Answer

A multi-signature token requiring multiple approvals before any transfer can occur