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Cryptocurrency Scams and Fraud Recovery Solicitors

Cryptocurrencies (also known as cryptoassets) allow you to buy goods and services, or trade them for profit. However, as they have grown more popular, cybercriminals are increasingly targeting the cryptocurrency market, leading to numerous instances of cryptocurrency scams and fraud.

In 2021 alone, scammers stole an estimated $14 billion worth of crypto worldwide. Cryptocurrency fraud is a serious crime, especially as it can lead to heavy financial losses, as well as emotional distress and a loss of privacy. As such, legal action is often necessary to maximise the potential of recovering scammed cryptocurrency and to ensure that the relevant parties’ rights are fully protected.

At Saunders Law, our fraud and asset recovery solicitors in London can advise on cryptocurrency scam recovery. We represent claimants and defendants caught up in such disputes, both in the UK and internationally. We can assist with the recovery of cryptocurrency assets, including methods such as asset tracing and third-party disclosures, as well as advising individuals facing allegations of cryptocurrency fraud.

We are a partner-led, niche litigation practice based in Central London. In order to provide an exceptional service for our clients, we only offer strategic high-level advice and representation. As a result, we cannot cost effectively handle claims with a value below £250,000.

Our clients rely on us to provide sensible and practical advice to find effective solutions to cryptocurrency fraud recovery, as well as our vigorous advocacy skills. Regardless of whether we are supporting a claimant or defendant in relation to cryptocurrency fraud, we will offer a comprehensive assessment of the situation. We will be transparent about the likely costs involved – as well as the available funding options.

Find out more about the firm, its teams and its typical work by taking a closer look at our clients.

Speak to our cryptocurrency scam recovery lawyers in London

For expert assistance in taking action or defending against an allegation of cryptocurrency fraud, contact Saunders Law today. We offer a free, no obligation initial discussion about how we may be able to help.

Call us on 020 7315 4809 or make an enquiry online.

Why work with our crypto scam recovery experts?

More than 40 years’ experience

At Saunders Law, our partner-led team of fraud and asset recovery solicitors draw on over 40 years of knowledge and experience. No matter what, our advice always takes reputational issues into careful consideration and we hold an excellent track record of successfully protecting our client’s interests.

Independently recognised expertise

Our team have been independently recognised for our market-leading expertise, with strong rankings in highly respected client guides the Legal 500 and Chambers & Partners.

Commercially minded approach to match our clients’ priorities

No matter what the situation may be, we will carefully plan our strategy around our clients’ circumstances and priorities. Our team have strong skills in negotiating out-of-court settlements and exceptional expertise with court litigation. We will take the most appropriate course of action based on your specific needs and requirements.

Exceptional personal service and client satisfaction

We pride ourselves on always providing an exceptional service. Our clients will receive a call back on the same day following an enquiry and will always be able to speak to one of our partners when required. We consistently achieve excellent feedback from our clients.

Examples of our successful handling of cryptocurrency scam recovery work

Most recently, successfully recovering £300,000 of Bitcoin, Ethereum and Algorand from suspended funds.

In this case, the client commented:

“Thank you very much. I really appreciate the help.
There is probably a fine line between fear and respect. You certainly have my respect.”

Our cryptocurrency scam recovery expertise

Our cryptocurrency fraud recovery team can assist with a wide range of legal strategies designed to prevent and remedy the misappropriation of crypto assets, helping to recover scammed cryptocurrency.

This may include, but is not limited to, taking actions such as:

  • Freezing orders
  • Search orders
  • Disclosure orders
  • International asset tracing and recovery

Every member of our team has developed their substantial commercial litigation skills over a number of years. We provide an exemplary service based on a high level of legal knowledge and business acumen, no matter what your circumstances may be.

Our Commercial Litigation Team is led by Matthew Purcell, who has an extensive depth and breadth of expertise in a full range of litigation matters. This includes handling matters in the Court of Appeal, Supreme Court and Privy Council.

What are cryptocurrency scams?

As with any other form of currency, there is an inherit risk that cryptocurrency assets can be stolen or fraudulently handled. Generally speaking, there are two types of cryptocurrency scams which could lead to stolen crypto:

  • Scams or initiatives designed to obtain access to a target’s digital wallets or authentication credentials. Scammers or companies may use techniques such as phishing to gather information that provides access to a digital wallet or security codes. This may also include access to physical hardware.
  • Impersonation, fraudulent investment or business opportunities which directly result in cryptocurrency being directly transferred also fall under this bracket.
  • Cyber-attacks or ransomware.

Cryptocurrency scams can be very sophisticated and are designed to catch out even the most experienced digital investors.

It is also important to note that cryptocurrency investments are more susceptible to fraud as they are unregulated by the Financial Conduct Authority (FCA). This means that victims of cryptocurrency fraud often do not have protection or a simple source of relief.

Cryptocurrency scam recovery tracing and techniques

There are several methods that our commercial litigation solicitors may use when tracing and planning to recover scammed cryptocurrency.

Information gathering

Our team can undertake various investigative methods. Using key sources such as Companies House, the Land Registry and social media accounts allows us to obtain vital information such as the location of assets and the financial circumstances of a particular individual or company.

Piercing the corporate veil

Individuals that are culpable for cryptocurrency fraud sometimes operate through a shell company. It may be necessary to bring forward a case directly against an individual rather than the company.

In civil fraud cases, which applies to cases involving cryptocurrency scam recovery, it is possible for the courts to allow a claimant to directly pursue the individuals responsible. This is known as ‘piercing the corporate veil’.

Disclosure orders

Banks, consultants and brokers will be incredibly valuable sources of information during the investigation process. In some instances, they may be more prepared to assist with an investigation than the defendant. In some situations, it may also be possible to obtain a disclosure order from a court, compelling a third party such as a bank to provide information.

Third party claims

Where a third party may have either participated in, or benefitted from cryptocurrency fraud, it may be possible to bring a claim forward against said third party where there is enough evidence to do so.

Cryptocurrency recovery defence advice in England and Wales

Being subject to cryptocurrency fraud recovery procedures, such as freezing orders and search orders, can have a significant impact on your livelihood, as well as your commercial reputation.

At Saunders Law, we can act on behalf of clients who are facing crypto theft recovery action. We can ensure assets are not unfairly or unreasonably restricted, as well as taking strategic steps to protect your legal rights.

We also have particular expertise with reputation management and can ensure that rules surrounding this are carefully followed at all times.

Frequently asked questions about cryptocurrency scams

Can stolen cryptocurrency be recovered?

One of the most pertinent issues many people have in relation to stolen crypto is whether it is possible to recover scammed bitcoin and cryptocurrency. The short answer to this is, yes. The longer answer is a little more complicated.

Thanks to blockchain technology, it is often possible to track down stolen crypto. Blockchain technology assigns a unique ‘hash’ to each crypto block, with the blockchain ledger using hashes to track down every cryptocurrency transaction. So, by following this blockchain, the relevant authorities should be capable of helping to recover stolen crypto. The courts also now recognise cryptocurrency and NFTs as property, so it is possible to obtain a seizure order in respect of stolen assets.

Can you track stolen cryptocurrency?

We work closely with tracing experts who are able to investigate and report on this. It is worth noting that, in theory, it is possible for someone to change the ‘hash’ of a crypto block after it is complete. However, doing so requires a substantial amount of computer power and technical skills.

Even then, as the blockchain is constantly updating its network, this overwrites any changes and means that transactions can still be closely traced.

How do I report stolen cryptocurrency?

If you believe that you have been the victim of a cryptocurrency scam, there are a number of important steps you need to take as soon as possible. This includes:

  • Contacting the police - As cryptocurrency fraud is a crime, you should report the incident to the police and Action Fraud. They will log the crime and provide you with a crime reference number.
  • Changing login details – If you are the victim of cryptocurrency fraud and you are still able to log in to your account, then you should reset any passwords and other relevant security information.
  • Notifying the exchange – Where you have purchased or are storing currency with a service provider, they need to be made aware of fraudulent transactions. They may be able to retain certain information which could be useful during an investigation.
  • Speak to our cryptocurrency fraud solicitors – If you fall victim to fraud, it is essential that you speak to an expert solicitor as soon as possible, who can guide you through the process of recovering scammed cryptocurrency.

How do I get bitcoin and other cryptocurrency back from a scammer?

After taking the steps to report stolen bitcoin, or any other type of cryptocurrency, our experts can work alongside you, guiding you through the steps required to recover your lost funds.

Depending on the circumstances, a number of potential solutions could be deployed. For instance, this could include careful information gathering and the use of disclosure orders. Following this, we can make use of freezing orders and search orders to remedy the misappropriation of crypto assets.

How does crypto get stolen?

There are a number of potential ways in which cryptocurrency can be stolen. The two most common methods are:

  • Scams or initiatives designed to obtain access to a target’s digital wallets or authentication credentials. Impersonation, fraudulent investment or business opportunities also fall under this bracket.
  • Cyber-attacks or ransomware.

Examples of crypto scams and initiatives may include:

  • Email phishing
  • Business investment scams
  • Imposter websites
  • Romance fraud

Cyber-attacks may be the result of:

  • Poor digital security
  • Human error

Regardless of whether crypto has been stolen via a scam, or direct theft via a cyber-attack, it may be possible to recover scammed cryptocurrency, especially as it can often be traced through blockchain technology.

How do I prevent cryptocurrency scams?

There are a number of steps you can take to reduce or minimise the risk of a cryptocurrency scam occurring.

This includes:

  • Implementing two-factor authentication on any crypto wallets or exchanges used
  • Storing private keys and other relevant information in an offline space
  • Avoiding sending cryptocurrency to unknown external addresses

Speak to our cryptocurrency scam recovery lawyers in London

For expert assistance in taking action or defending against an allegation of cryptocurrency fraud, contact Saunders Law today. We offer a free, no obligation initial discussion about how we may be able to help.

Call us on 020 7632 4300 or make an enquiry online.