I’m trying to understand, from a purely technical standpoint, how Ethereum transaction analysis is used after ERC-20 tokens are stolen.
In a case I reviewed, a recovery service (Scanner Hacker Crypto Recovery) claimed they assisted by:
• tracing token transfers across multiple wallets,
• identifying interaction points with centralized exchanges,
• documenting on-chain evidence for escalation.
I’m not asking about legitimacy or guarantees, but rather about what is technically possible on Ethereum:
- How is ERC-20 token flow traced across wallets and smart contracts in practice?
- What methods are used to identify exchange deposit addresses or mixing patterns?
- In what scenarios can on-chain evidence realistically lead to asset freezing or recovery (e.g., via exchanges or law enforcement)?
- Where are the hard technical limits where recovery becomes impossible?
I’d appreciate an Ethereum-focused explanation of the tools, techniques, and constraints involved.