Are you facing allegations of crypto fraud? Cryptocurrencies like Bitcoin may be relatively new and decentralised, but they are not unregulated. As countries around the world continue to introduce new crypto laws year after year, more individuals are finding themselves being accused of fraudulent crypto activities. If this is something you are currently experiencing, it could be critical that you hire a solicitor with knowledge of the crypto market to defend you.
At ABV Solicitors, we have a team of experts who can help with your case. On top of defending clients against accusations of crypto fraud, we can help recover frozen assets and help offer advice to keep you ahead of evolving regulations. This post delves more into exactly what crypto fraud entails and what we can do to help defend and protect you.
Crypto and Bitcoin fraud refers to any deceptive activity involving cryptocurrencies that aims to financially exploit others. Targets may include investors or customers who are using crypto as a currency. An increasing number of scams and schemes have been developed in recent years to take advantage of the crypto market’s growing popularity. While many of these scams are deliberate, some people have found themselves unknowingly getting involved or supporting fraudulent activities.
Crypto fraud can take several forms. Some common examples of crypto fraud include:
Ponzi schemes
As with traditional Ponzi schemes, crypto Ponzi schemes involve fraudulently promising returns to investors by stealing money from other investors. This may include taking investors’ money and claiming to put into various cryptocurrencies, but instead pocketing it and using money from new investors to pay these investors. Although ponzi schemes create an illusion of profit, they are not sustainable and inevitably collapse.
ICO scams
An ICO (Initial Coin Offering) scam involves raising money for a new cryptocurrency and promising rewards to investors. However, the cryptocurrency does not exist, and the raised funds end up simply being stolen. Individuals can be accused of crypto fraud for engineering or promoting these scams.
Pump and dump schemes
This involves artificially inflating the price of a cryptocurrency by aggressively promoting it. Once the price has risen, all the holdings are sold, causing prices to plummet and leading to losses for investors.
Crypto phishing
Deceiving someone into revealing sensitive information via email by posing as someone they trust is known as phishing. Using this tactic to trick individuals into revealing login details or private keys is a common crypto scam that could have you convicted of fraud.
Fake exchanges
Another common form of crypto fraud involves setting up a fake crypto exchange and then getting users to deposit funds. The exchange is then shut down and the money is pocketed.
Crypto fraud can take more complicated and unusual forms. By using a qualified crypto fraud solicitor, you can defend yourself against allegations of less common types of crypto fraud.
Legal systems around the world regard crypto fraud as a serious crime. If you are successfully found guilty of committing crypto fraud, you could face one of the following penalties.
Fines
It is not uncommon for those accused of crypto fraud to face fines. These could be worth more than the value of the money extorted and may have to be paid by a deadline.
Restitution
Another penalty could be restitution. This involves paying back investors or victims money that was stolen from them. Interest fees may be added to the amount due.
Imprisonment
Crypto fraud is a crime that can result in prison time. Sentence lengths can vary from a few months to a few years depending on the severity of the fraud.
Civil Lawsuit
Those who feel they are victims of crypto fraud may choose to file a lawsuit instead of launching a criminal investigation. In other cases, a lawsuit may be filed on top of criminal conviction.
Digital assets may also be frozen when facing allegations of fraud or you may find that you are unable to log in to certain accounts. Reputational damage could also be a negative consequence.
If you have been accused of committing crypto fraud, it could be vital that you seek out legal support. There are law firms out there with staff who specialise in crypto fraud cases. In these cases, you will be working with solicitors who have a thorough knowledge of cryptocurrencies and blockchain technology.
Knowledgeable solicitors such as these will know how to help you build a strong defence. This could include collecting evidence to show that no fraudulent activity was committed and examining what evidence has been brought up against you. Using this defence case and negotiation tactics, solicitors may be able to help reduce penalties such as fines or help recover assets that have been frozen. If your case goes to court and you face imprisonment, a crypto fraud solicitor may even be able to help you avoid jail time – or, at the very least, reduce your sentence.
At ABV Solicitors, we take pride in being one of the top fraud specialist law firms in the UK. Our team of experienced solicitors are experts in fraud law and have taken on many complex and large cases over the years.
Crypto and Bitcoin fraud is one area of law that we specialise in. By working with us, you can be sure that a thorough defence strategy will be put into place. We do everything in our power to reduce stress for our clients and help them achieve the best outcome.
It is recommended that you seek out legal help early to help get as much support as you can before the deadline. To book a consultation, you can fill in our online form, or you can choose to contact us by phone or email.
Simply need advice regarding crypto and Bitcoin fraud? If you’re worried a scheme you’re involved in may be straying on the wrong side of the law or you think someone else may be scamming you, you can also contact us to seek out advice.
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