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Bitcoin Fraud

Advice for victims of Bitcoin Fraud

Bitcoin is a type of digital “cryptocurrency.” It is regulated using encryption techniques which regulate the generation and transfer of funds. Bitcoin operates independently of any central bank.

Cybercriminals and fraudsters are using the anonymous, decentralised nature to operate scams and launder finances. Secure bitcoin payments have many uses but as with any type of activity involving money, they can be a target for scammers.

The main types of bitcoin scams are:

Malware & viruses hidden in fake Bitcoin wallets

Scammers are offering effortless ways to acquire bitcoin through social media. They share links which distribute malware to victims’ devices. This way, the scammers are able to access victims’ details and information, as well as compromise their existing bitcoin resources.

Bitcoin phishing

Online criminals pose as an organisation offering legitimate bitcoin services, often impersonating well-known companies. These scammers then entice victims to part with their bitcoin keys and, once the key has been acquired, they are free to help themselves to the bitcoin in the wallet.

Bitcoin 'flipping'

Many people purchase bitcoin as an investment, hoping that it will rise in value. Often, investors attempt to realise this profit at an earlier date. This leads to scammer engaging in ‘bitcoin flipping scams’. These scams purport to increase your investment quickly, for a fee. In reality, the scammers simply steal your bitcoin.

Pyramid schemes

Bitcoin, while a relatively new type of currency, can still be the vehicle for more traditional schemes such as pyramid schemes.

These schemes are arguably as old as currency itself and involve ‘investors’ paying into the scheme and recruiting others to keep the scheme going. The fraudsters encourage users to sign to up a low-risk, high-profit scheme and those at the top profit while those further down simply lose their entire investment.  

What can I do if I’ve been the victim of a bitcoin scam?

First of all, there is no shame in being the victim of one of these sophisticated and predatory operations. By coming forward you may be able to recover some or all of your lost funds and prevent the scammers from targeting others. Secondly, contact Selachii LLP. We have extensive experience in helping clients to recoup and recover funds lost in bitcoin scams. Our team have built up knowledge and experience in the workings of these schemes and the methods they use to target investors. We also understand how professional misconduct can cause you to lose money.

This puts us in a unique position with respect to helping creditors and investors to recoup their losses and in holding scammers and fraudsters to account.

We have an excellent track record in holding scammers to account including having assets frozen, even where companies have been set up using fake information. Our approach is based on close collaboration with forensic accountants and other experts, prosecution agencies (both domestic and international) to trace and recover your assets.

While it may feel hopeless, there are legal avenues open to you to recover your money. At Selachii, we explore each of these and investigate the best approach to recover your investment. 

In most cases, the recourse is to issue a winding-up petition against the company who first elicited the investment. This enforces the debt and takes the matter to the Official Receiver. At this point, our expert team of solicitors go to work investigating matters, with the help of other experts, to recover your funds. We will seek to recover the funds from the company or the individuals responsible.

In order to pursue an individual directly for repayment of funds they’ve misappropriated, there must be evidence of some kind of wrongdoing, such as misfeasance, misrepresentation or unjustified enrichment.

If the investigative and prosecuting authorities have information on the fraudster (normally because they’ve got a criminal conviction) we work to get access to this data. It’s important to bear in mind that the civil standard of proof, which only requires to be proved on a balance of probabilities, is lower than the criminal standard of beyond reasonable doubt.

As well as acting for individuals and businesses, we have also acted in class actions (also known as multi-party actions), where the same fraud has been committed against many individuals. This means that an individual unable to recover funds because of the costs and time involved can have recourse by pursuing legal action as part of a group.

 

Contact Selachii Expert Fraud Litigation Solicitors

 

We take pride in building case-winning strategies tailored to the needs and budget of our clients, and are expert in tracing and recovering assets in both the UK and overseas. If you require first-class, cost-efficient legal advice on investment fraud, or any other type of fraud, please contact us.

How Selachii Can Help

Fraud is an issue that demands extreme tact as well as often needing great doggedness and attention to detail. We don’t believe in simply handing out one-size-fits-all solutions to problems. We will focus on your specific circumstances before working out the best and most cost-effective way of helping you achieve your aims.

Selachii is a dynamic litigation law firm based in Kensington, London. We put the best interests of our clients at the heart of everything we do. We work with both businesses and private individuals, giving them legal advice and support which is unique to them and their situation.

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