Unmasking Crypto Crime: A Deep Dive with Blockchain Forensics Expert Jessica Chuah

Sanad Karkar
Jun 11
3 min read

From billion-dollar wallet hacks to deepfake KYC attacks, the financial crime landscape is shifting fast—and blockchain is both the battleground and the key to the solution.

In our latest MoonCast episode, LPO&Law’s Sanad Karkar and Razin Nizar sit down with anti-financial crime expert Jessica Chuah to explore the intersection of digital assets, blockchain transparency, and regulatory enforcement. With experience spanning HSBC, Chainalysis, Crystal Intelligence, and real-world collaboration with Interpol and APAC regulators, Jessica brings a frontline view of how financial crime is evolving—and how investigators can keep up.

A New Breed of Criminals

Forget ski masks and duffel bags. Today’s financial criminals are coders and compliance flouters—operating behind screens, using smart contracts, synthetic IDs, and permissionless networks to move millions in minutes.

Jessica unpacks cases like the Bybit hack ($1.5 billion stolen in 90 minutes), explains the peer-to-peer laundering loops common in Southeast Asia’s unbanked regions, and even highlights how AI-powered deepfakes are breaking KYC defenses in onboarding systems across the world.

“The criminals don’t look like what you imagine. These are geeks. These are 22-year-old DeFi bros operating with more precision than traditional fraudsters ever could.” - Jessica Chuah

Blockchain Isn’t the Problem—It’s the Answer

While media headlines love to label crypto as the villain, Jessica flips the script.

“In blockchain, everything is public, immutable, and timestamped. Compare that to banking systems where data access is siloed, gated, and often incomplete,” she explains. “The real question is whether regulators and compliance teams are trained—and equipped—to trace the data properly.”

She walks us through the distinction between hot and cold wallets, the real limits of traditional AML systems, and why investigation requires human intelligence, not just AI models.

From MiCA to Malaysia: What Good Regulation Looks Like

When asked about her favorite regulatory model, Jessica doesn’t hesitate—MiCA, the EU’s Markets in Crypto-Assets Regulation.

“It’s hard, but it’s comprehensive,” she says. “It forces exchanges and custodians to build proper compliance frameworks from the ground up. It’s not just licensing theater—it’s real risk management.”

In contrast, many APAC regulators are still in sandbox mode, often reactive instead of proactive. Jessica highlights the critical need for better cross-border data access, faster investigative tools, and more education for both public and private actors.

Choosing the Right Blockchain Analytics Vendor

Jessica also breaks down the three non-negotiables in any blockchain intelligence tool:

Chain Coverage: If your vendor doesn’t support Arbitrum or regional chains, you’re flying blind.
Data Depth: Global coverage doesn’t help if there’s no meaningful data on your market.
Investigation Tools: Screening is step one. If you can’t trace the next two hops, you’re wasting time.

Crypto, Compliance, and the Netflix Test

In one of the most entertaining segments, Jessica pitches her pick for a true crime docuseries—the Jimmy Zhong case, where a young hacker exploited Silk Road vulnerabilities to steal over 500 BTC in 2012, long before most people even understood what Bitcoin was.

"This isn’t Ozark anymore. It’s real, it’s digital, and the masterminds look nothing like what we’ve seen in traditional crime stories."

Final Thoughts

The future of financial crime compliance isn’t about catching up—it’s about staying ahead. At LPO & Law, we work with fintechs, startups, and institutions navigating digital assets, token regulations, and global AML requirements. From governance frameworks to forensic readiness, our team helps clients build with confidence and clarity.

🟣 If you’re building in Web3 or scaling in regulated markets, reach out to us for legal strategy that moves with your business.

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