How Hidden Crypto Is Found in Divorce Cases
“Crypto” has become a buzzword in divorce.
Women sit across from me and say, “I think he hid our money in Bitcoin, and we will never be able to find it.” Sometimes, they are right. Spouses do use cryptocurrency deliberately and strategically to move assets out of sight, often years before divorce enters the conversation.
But not all “hidden” crypto reflects intentional hiding.
The goal is not to launch a five- or six-figure forensic fishing expedition every time a husband mentions Coinbase. The goal is to understand what’s possible, what’s worth pursuing, and which clues actually matter from a divorce financial analysis and educational perspective.
Recently, I spoke with an independent crypto forensic investigator, Nick Himonidis, about what he sees in the field. Nick is not affiliated with Savant, and his services are separate from financial advisory services. What he shared confirmed what I see every day in my work with women. The basics matter, but advanced traces, the ones many attorneys never consider, in some cases shift a case from feeling hopeless to “we may have something here.”
Start with the Records That Already Exist
Start with the obvious.
In a typical case, the first steps are not exotic:
- Pull complete bank and credit card statements and look for transfers to known exchanges or crypto-enabled apps such as Coinbase, Binance, Kraken, Gemini, Cash App, PayPal, and Venmo.
- Review tax returns for any reference to digital asset gains, losses, or income.
- Compare those records to what appears, or does not appear, on the sworn financial disclosure form required in your state.
At this stage, subpoenas matter. When statements show transfers to a major exchange, your attorney can subpoena the platform for account information. That typically includes transaction histories, deposit and withdrawal addresses, and transaction hashes, which are the unique identifiers tied to each transaction. That information alone may reveal more than people expect.
If the activity stops there, perhaps a few trades on a mainstream platform that failed to appear on the disclosure, you may not need a full crypto forensic team. You may need a divorce financial advisor or Certified Divorce Financial Analyst® to help interpret the records already in the file.
Your team may also consider subpoenas to the top 20 or 30 crypto exchanges and brokerages to confirm no other custodial accounts went undisclosed. If additional accounts surface without a clear funding source in the bank records, that omission may signal something more deliberate and justify a deeper investigation.
When Crypto Was Bought to Hide Money
Cases become more complex when a spouse acquired crypto with the intention of hiding money well before divorce discussions began.
Nick draws a clear distinction between “forgot to list it” and “planned to hide it.” Those scenarios require very different approaches.
Sophisticated hiders often avoid well-known exchanges. They may use black or grey-market platforms to convert cash or other assets into crypto held in noncustodial wallets. In those cases, no familiar brokerage statements arrive in the mail.
On paper, that can look impossible to trace.
In practice, it often leaves a different kind of trail.
The Physical Clues Behind Digital Assets
Noncustodial wallets don’t generate statements, but the keys to access them usually exist somewhere very human.
When significant money is involved, people fear losing their private keys or recovery phrases. That fear shapes behavior:
- They purchase hardware wallets and store them in drawers or safes.
- They write recovery seed phrases on index cards or metal plates and place them in safe-deposit boxes.
- They stash scraps of paper filled with “random” words or numbers that no one else in the house understands.
In high-stakes cases, investigators sometimes conduct detailed searches of a home. They open safes, dig through file boxes, and document unexplained word lists and PINs. Those small details can, in some cases, help identify significant undisclosed assets.
As Nick often says, crypto may be digital, but it frequently leaves a physical footprint.
When Memory Becomes Evidence
This is where a spouse’s memory can matter.
Maybe five years ago, after an affair came to light, he tried to make amends by buying one Bitcoin as a birthday gift. She remembers the moment. She may still have access to the original Coinbase login where the asset first appeared.
From that starting point, each transaction hash and transfer creates a trail. With the right expertise, investigators can follow it.
Why the Right Team Matters
Nick maintains a working list of institutions he has personally encountered in his forensic work. He updates it quarterly. Many people, including attorneys, don’t realize how many nontraditional exchanges and noncustodial structures exist outside of household-name platforms.
My role isn’t to turn every divorce into a crypto hunt.
It’s to listen closely, connect your personal history to the financial records, and involve specialized forensic experts only when the facts justify it.
This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.
Michelle M. Smith
Managing Partner / Financial Advisor
CDFA®