PHAKTOR

Virtual Currency Team and Tracing Methodology Development – As COO of the National Cyber Investigative Joint Task Force, Mr. Holdeman created and led the whole-of-government Virtual Currency Team (VCT) to develop virtual currency tracing methodology best practices. He recruited team members from across the government and identified funding sources. He developed the six-pillar strategy focused on: 1) tracing methodology development; 2) investigative support; 3) training; 4) tool development; 5) dataset collection; and 6) liaison. The VCT served as a resource across the U.S. government and led to the identification and prosecution of subjects in national security and criminal investigations, and the seizure and forfeiture of virtual currency.

Virtual Currency Trading Analysis - Alleged Tax Evasion – Mr. Holdeman was engaged by a client who was targeted by the IRS-CI and USAO for allegedly hiding income from virtual currency trading. He obtained, scheduled, and analyzed seven years of trading activity. He identified actual gains and losses, along with unrealized gains and losses, including crypto-for-crypto trading. He developed themes from the analysis and presented his findings to the defense attorneys to demonstrate the lack of intent to hide income for negotiations with the USAO. The client agreed to pay past due taxes and penalties, but avoided criminal culpability.

Intrusion and Theft of Client Virtual Currency Holdings – Mr. Holdeman was engaged by a client to investigate the intrusion and theft of over $2 million in personal virtual currency holdings. He conducted intrusion analysis and traced illegal virtual currency transactions. He identified the chronology of the subject's illegal activity and identified legal process opportunities. He drafted a comprehensive report summarizing the investigation and outlining law enforcement investigative opportunities. He coordinated and conducted a presentation to the USAO and FBI, leading to the initiation of a federal criminal investigation.