Source-of-funds report
The funds are consistent with the stated source. 93% of the current value traces to documented fiat deposits and the price appreciation of assets bought with them.
Mr Example deposited GBP 61,400 across two regulated exchanges between 2017 and 2021, bought bitcoin and ether, and largely held them. The remaining 7% came from staking rewards and two airdrops. We matched 46 of 48 exchange statement entries to on-chain transactions; the two unmatched items are explained in section 7. No direct exposure to sanctioned addresses or mixers was identified.
1Purpose and scope
Prepared for Mr J. Example to support anti-money-laundering checks by his conveyancing solicitor on a residential property purchase. The report explains how GBP 420,000 withdrawn from Kraken to his UK bank account on 4 September 2026 was generated. It covers the five wallets he declared and the exchange statements he supplied.
| Wallet | Network | First used | Declared by client |
|---|---|---|---|
| bc1q8e...k4x2 (and xpub) | Bitcoin | Nov 2017 | Hardware wallet |
| 0x5d18a4...e0b6 | Ethereum, Arbitrum | Jan 2018 | Hardware wallet |
| 0xa40f33...c773 | Ethereum, Base | May 2020 | Browser wallet |
| 0x77be01...2f9a | Ethereum | Mar 2021 | Staking |
| Kraken, Coinbase accounts | Exchange | 2017 | Statements supplied (CSV) |
2Fiat in
All fiat entered through two FCA-registered exchanges, from a UK bank account in the client's name.
| Year | Exchange | Deposits | Amount (GBP) | Bought |
|---|---|---|---|---|
| 2017 | Coinbase | 4 | 6,400 | BTC |
| 2018 | Coinbase | 9 | 11,000 | BTC, ETH |
| 2019 | Kraken | 6 | 9,000 | ETH |
| 2020 | Kraken | 11 | 21,000 | ETH, BTC |
| 2021 | Kraken | 5 | 14,000 | ETH |
| Total | 35 | 61,400 |
3Growth in value
The chart shows the GBP value of all in-scope wallets and exchange balances at each year end, against cumulative fiat deposited. The gap between the lines is price appreciation on assets held, not new money arriving.
4How the value was made
There were no inbound transfers from third-party wallets above GBP 500 other than exchange withdrawals, staking rewards and the two airdrops.
5Path to the withdrawal
The funds withdrawn to the bank account can be followed back without a break.
| Step | Date | From | To | Amount | Reference |
|---|---|---|---|---|---|
| 1 | 28 Aug 2026 | 0x5d18...e0b6 | Kraken deposit address | 96.2 ETH | 0x8a1f...44c2 |
| 2 | 29 Aug 2026 | bc1q8e...k4x2 | Kraken deposit address | 1.85 BTC | f3e9...a07b |
| 3 | 1 Sep 2026 | Kraken | Sold for GBP | GBP 421,960 | Statement rows 44-47 |
| 4 | 4 Sep 2026 | Kraken | UK bank account ending 4471 | GBP 420,000 | Statement row 48 |
6Reconciliation
Every crypto deposit and withdrawal on the exchange statements was compared with the blockchain.
7Items a reviewer should know about
- Two unmatched entries (2018, GBP 310 total): Coinbase withdrawals to a wallet the client no longer has access to. Immaterial to the amount being evidenced.
- One inbound from a third party (2021, 0.4 ETH): described by the client as repayment from a friend. No supporting document.
- Exchange-internal trading is taken from the statements and cannot be independently verified on-chain.
8Risk screening
| Check | Result |
|---|---|
| Sanctioned addresses (OFAC SDN), direct | None |
| Mixers, direct | None |
| Gambling or darknet-labelled counterparties | None found |
| Indirect exposure (two hops) | Not checked; direct counterparties only |
9Limits
This report relies on wallet addresses and exchange statements supplied by the client and on public blockchain data. It does not verify the client's bank records or identity. It is not legal, tax or accounting advice, and acceptance is at the discretion of the firm requesting it.