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How do people hide assets with crypto?

On Behalf of | Jul 21, 2022 | Divorce |

For as long as couples have gotten divorces, people in divorce situations have also hidden their assets. This has not changed in the current day, though the method of hiding assets has changed somewhat.

These days, more people turn to cryptocurrencies when hiding assets. But exactly how does this work?

Defining digital assets

According to CNBC, some people try to hide assets through cryptocurrency. This currency exists solely in digital spaces, and people can use their digital wallets to hide things that might otherwise get found in the real finance world.

Up until recently, not many people understood a lot about crypto and digital currencies. Due to the lack of public scrutiny and even government regulation, many people used cryptocurrency for shady business. For example, some used it to launder money. It also served as a popular way for people to hide their money in divorce.

How people use digital wallets to hide money

Because so few people knew about crypto, many did not even think to check their spouse’s digital wallet. This allowed the spouse attempting to hide assets to get away with their plan without detection. Then, after the finalization of the divorce, they often cashed out on their currencies and translated them back into cash. This left this large chunk of finances essentially unscathed.

This is naturally not fair to their spouse, though. No matter the purpose or the method, hiding assets is illegal. This means that people who suspect their spouse of hiding assets digitally through cryptocurrency should consider investigating this possibility and getting the compensation deserved if their suspicions end up correct.