Grant Thornton Among Law Firms Building an International Cryptocurrency Fraud Network
Leading legal firms in the United Kingdom (UK) have joined hands to establish an international body to deal with cryptocurrency-related crimes. The network is called “Cryptocurrency Fraud and Asset Recovery (CFAAR).” Apart from lawyers, it also comprises experts in assets recovery, forensic accounting, and corporate intelligence.
In an announcement, the parties said they intend to create a professional guideline to deal with any disputes and circumstances in the cryptocurrency ecosystem.
During the launch, the group of experts observed that many frauds had plagued the crypto industry. Some of them include the outright theft of cryptocurrencies, some related to initial coin offering (ICO), while others ransomware cases.
For the group, these scenarios call for a properly constituted legal industry to offer “the best possible means of redress.”
Cryptocurrency Fraud Network, a Trusted voice in Judicial and Regulatory Reviews
The CFAAR team comprises top firms such as Grant Thornton, Rahman Ravelli, Stewarts, Osborne Clarke, and Asset Reality.
Notably, the cryptocurrency fraud network said that it’s committed to becoming a professional and trusted voice regarding “judicial and regulatory reviews and consultations” on matters revolving around virtual currencies.
Commenting on the developments, the ex-Justice for the UK Supreme Court, Lawrence Collins, said, “criminal enforcement is not a sufficient remedy for victims.” Additionally, he observed that London’s appeal as a financial center also attracts “international financial crime.”
Collins further said that the CFAAR team has to be ready to help “clients who have been the victims of fraudsters.” According to the former Justice of the UK Supreme Court, fraudsters nab unsuspecting victims through exaggerated promises of high returns on investments or through phony virtual currency exchanges or assets.
He added that scammers cover their trails “through complex webs.” Luckily, he noted that the CFAAR is properly constituted to help victims of such schemes.
The formation of the cryptocurrency fraud and asset recovery network comes roughly four months after statistics by the City of London Police in conjunction with CPS (Crown Prosecution Service) indicated a rise in virtual currency scams.
Crypto Crimes Account for 0.6%, Binance Ordered To Trace Hacked Crypto
According to the report, 21 per cent of all cybercrimes are connected to investments involving crypto. However, out of slightly above 822,000 fraud cases, crimes tied to virtual currencies account for only 0.6 per cent.
While these values indicated the threat is minimal, CPS forecasted that this would likely increase as more people embrace virtual services.
As CFAAR roles up its sleeves, a UK court has directed Binance, a leading global cryptocurrency exchange, to track funds hacked from Fetch.ai’s account. Documents presented in court show that a hacker accessed the user’s account on the exchange and siphoned $2.6 million worth of assets.
To avoid detection, the malicious actor sold the assets at a lower price. The court directive expects the cryptocurrency exchange to locate and freeze the stolen virtual assets if they are still on the platform.
Interestingly, the judge considered the user’s assets on the exchange in terms of property instead of private keys. The judge said that the crypto deposited on Fetch.ai’s account on the exchange is “to be regarded as property for the purposes of English Law.”