The tracing of crypto transactions is a complex topic. Cryptocurrencies, like Bitcoin and many others, operate on public blockchains, which means that all transactions are recorded on a public ledger. These transactions are visible to anyone who wants to explore the blockchain. So, in that sense, crypto transactions are transparent and traceable.

However, cryptocurrencies also provide a degree of pseudonymity. Instead of using real names or personal information, users transact using cryptographic addresses. These addresses are essentially long strings of characters that do not directly reveal the identity of the users involved. This aspect can make it challenging to tie a specific address to a particular individual or entity.

Nonetheless, it is important to note that various techniques and tools have been developed to analyze blockchain data and track transactions. Blockchain analysis firms and government agencies often employ these methods to trace the flow of funds and identify potential patterns or connections between addresses.

Furthermore, if someone links their real-world identity to a particular cryptocurrency address, all their transactions associated with that address become identifiable. This can happen, for example, when individuals use cryptocurrency exchanges that require KYC (Know Your Customer) verification.

So, while crypto transactions offer a certain level of anonymity, they are not completely untraceable, and with the right resources and expertise, it is possible to track and analyze transactions on public blockchains. As a result, law enforcement and regulatory agencies can investigate illicit activities involving cryptocurrencies, just as they would with traditional financial transactions.