Direct and indirect exposure
A direct connection has no intermediate address. An indirect connection follows a path through one or more intermediate addresses.
What does it mean?
A direct connection has no intermediate address. An indirect connection follows a path through one or more intermediate addresses.
Documented examples
Documented example
Bybit: documented movement across blockchains
The FBI’s 26 February 2025 alert says some assets stolen from Bybit were converted to bitcoin and other virtual assets and dispersed across thousands of addresses on multiple blockchains. This is a documented example of tracing funds across assets, addresses and networks.
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Documented example
Bitcoin Fog: transaction connections in a court record
The D.C. Circuit opinion of 25 September 2026 describes Silk Road and AlphaBay both sending bitcoin to and receiving bitcoin from Bitcoin Fog. These service-level transaction connections do not identify the owner of every additional wallet in a path.
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Why it matters
Read the direction, time, asset and networks of documented transfers. Distinguish incoming and outgoing funds; count intermediate addresses using the provider’s definition of a hop. An observed path alone does not establish common ownership or knowledge of a counterparty’s activity. Estimating funds attributable to a source requires the methodology and available transaction data. Compare these principles with the source-dated Bybit and Bitcoin Fog examples below.
Related reading
Put the explanation in context
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