Blockchain forensics involves the investigation and analysis of blockchain transactions to trace the movement of cryptocurrencies. This process helps identify the source, destination, and flow of funds, often focusing on illicit activities such as money laundering, fraud, and theft.To conduct blockchain forensics, investigators use specialized tools to visualize transaction patterns. These tools can reveal transaction histories by analyzing public blockchain records, which are transparent and immutable. By clustering addresses associated with specific wallets, forensic analysts can track criminal activities and gather evidence.As cryptocurrencies often provide a degree of anonymity, blockchain forensics plays a crucial role in law enforcement efforts. It aids institutions in compliance with regulations by tracking suspicious transactions and ensuring adherence to anti-money laundering laws. Ultimately, blockchain forensics helps bridge the gap between the digital and traditional financial systems, enabling authorities to investigate and prevent financial crimes effectively.