Crypto Asset Recovery Lawyer
Madison Legal’s crypto asset recovery lawyer are experts in fraud litigation with extensive experience in handling high value, complex fraud, and asset tracing disputes.
The Madison Legal asset recovery solicitors and partners has vast experience pursuing wrongdoers using a range of domestic and international freezing orders along with applications for pre-action and non-party disclosure orders to obtain vital information and documentation necessary to secure missing assets and gaps in the evidence.
We work closely with our “partner” criminal fraud firms to come up with a litigation strategy that includes protecting and freezing assets of the wrongdoers and third parties caught up in the fraud.
Asset Tracing and Recovery Defence
Madison Legal asset tracing solicitors understand that when a potential fraud is detected there is a balance of moving as fast as possible to protect the assets being dissipated against putting the strongest case possible. We understand that putting a team together quickly, often from different jurisdictions, is vital in order to freeze assets and secure vital evidence for any potential claims.
The asset recovery solicitors at Madison Legal have much experience in tracing and recovering stolen money and assets around the world and we regularly advise on obtaining freezing injunctions to preserve assets and search orders and Norwich Pharmacal orders to protect and obtain evidence.
Our asset tracing solicitors also have much experience acting for individuals and companies who are on the receiving end of a fraud claim and innocent third parties who may have been caught up in the fraud (for example, bone fide purchasers for value of stolen assets).
Civil or commercial fraud is a broad term covering a number of different circumstances. In general terms, it takes place when a fraudulent misrepresentation was made by the defendant to the claimant. Fraudulent misrepresentation occurs where: the defendant makes a false statement; and knows the statement is false. Further, the defendant intends the statement to be relied on by the claimant; and the claimant suffers loss as a result.
How to prevent the disposal of misappropriated assets
For those who have suffered loss as a result of civil or commercial fraud, there are various ways our asset recovery lawyers can help to prevent assets from being disposed of while a civil claim is in progress.
An interim freezing order/injunction is one of the most powerful methods, as it can provide the power to restrain all types of assets – including property, land, shares, and bank accounts – held by the defendant and any third parties on their behalf.
Freezing injunctions require the defendant to provide full disclosure of all their assets and can require relevant third parties to provide details on all the assets they hold for the defendant. This information can be invaluable to the asset tracing and recovery process, so we may recommend obtaining a freezing order/injunction in the appropriate circumstances.
In the most serious cases of civil or commercial fraud, a search and seize order (also just referred to as a search order) may be granted by the court. This order allows items to be seized from the defendant’s properties, where there is a serious risk that stolen assets may be disposed of.
Account Freezing Orders
There are various interlocutory measures available to individuals who have been the victims of fraud and who wish to secure and recover assets quickly. The main nuclear weapon is an Account Freezing Order which is designed to locate stolen money and property, and also prevent the dissipation of assets.
Our crypto asset recovery lawyer and asset tracing solicitors regularly apply for and successfully obtain Freezing Orders, often at short notice, on behalf of our clients. Freezing Orders can also have a significant impact on individuals as access to funds may be denied. Our asset recovery solicitors are able to advise clients on their obligations under such orders and help access funds to meet personal, legal, and business expenses.
Crypto Asset Recovery and Cryptocurrency Fraud
Cryptocurrencies are quite different from typical currencies such as dollars, euros, or sterling.
Instead of being issued and backed by a government or central bank, cryptocurrencies are digital assets secured by cryptography that can be used as a medium of exchange. Their validity is typically provided by a blockchain system with an open, distributed ledger recording transactions.
As with any high value and volatile assets, especially one that has little to no regulation, there are potential risks for fraudsters. Some examples are below:
Initial Coin Offering (ICO) scams
The first offering of a particular new cryptocurrency for sale, the ICO, can be a means of preying on the inexperienced investor. Many ICOs are made up, with fake biographies of team members and whitepapers copied from other, legitimate cryptocurrencies. They attract investment, usually with a high return, for a crypto asset that is either non-existent or virtually worthless.
Pump and Dum schemes
This is where the owners of crypto assets artificially inflate the price of the assets before selling off their assets at a level that does not reflect their true worth. This is particularly prevalent with “new” crypto currencies and at the ICO stage.
Like any asset, crypto currencies are prone to traditional theft where criminals may hack crypto wallets and steal the assets. Further, fraudsters can set up fake crypto exchanges to steal the assets.