Divorce is a dreaded moment for many, it means the end of a marriage. The traumatic moment for many couples often involves the division of assets and a bureaucratic process that can take a long time. In some recent cases, it also involves hiding assets using cryptocurrencies and NFTs.
Blockchain experts are starting to notice that cryptocurrencies and NFTs are slowly becoming efficient tools for divorce parties to hide values from the property separation process. The blockchain expert Paul Sibenik sees this technology being used by ‘sly husbands’.
“Cryptocurrencies are already an efficient tool for hiding money. This makes them the perfect companion for smart spouses going through a divorce,” says Paul Sibenik.
hidden cryptos
Sibenik is the senior case manager at CipherBlade, a company specializing in blockchain investigations, and said it started noticing a growth in the use of cryptocurrencies in these processes a few years ago.
According to Sibenik, in 2019, the year CipherBlade was founded, the use of cryptocurrencies in divorce proceedings was unusual. Divorce cases now account for about 15% of his work investigating cryptocurrencies and NFTs.
“I was the first person – well, maybe one of the first people – to realize what kind of potential cryptocurrency had. I think I’m right because given the number of cases we have, it seems to be becoming more common,” the expert added.
Interestingly, the expert points out that the cases are not low-value, stating that he has already dealt with values reaching around US$10 million “hidden” in various crypto market assets and not appearing in official documents.
The expert stressed that NFTs and cryptocurrencies have become the “Cayman Islands bank account” of the current generation.
Can cryptocurrencies and NFTS be used to hide values?
Sibenik stated that many of the spouses claim they did not know to declare their cryptocurrency investments during the process, others deny that they have, even when the values are discovered.
The point is that, even with the optimism of many investors, most cryptocurrencies can be discovered with companies that already specialize in them and it doesn’t always take long for these values to be discovered.
Blockchain is immutable and transparent at its core, so all the information is there, open to the public, mind you. While some coins have anonymity, the most well-known, such as Bitcoin and Ethereum, have a transparent and researchable network.
As a result, using cryptocurrencies or NFTs as a way to hide values from divorce may not be the best solution.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
