When funds mix in one address, tracing has to pick an accounting rule, such as first in, first out (FIFO) or last in, first out (LIFO), and the choice can change the result. Screening usually comes first to find connections worth tracing; tracing then confirms or rules out each link, removing false positives and documenting true ones.
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Glossary term
What is Fund tracing?
Fund tracing follows specific funds from a source, such as a hacked wallet or scam deposit, through intermediate transactions to where they ended up. Unlike screening, which shows that an address is connected to a risk source, tracing respects transaction order and amounts to show which value actually moved, the evidence investigators need for recovery or court.