The recent decision in Jones v Persons Unknown [2022] EWHC 2543 (Comm) has elated users of Crypto Exchanges operating in the UK as the Court held that the defendant Crypto Exchange should be taken as a constructive trustee in relation to the Wallet holders.
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Rising cases of Cyber Fraud
The claimant was a victim of cyber fraud which has become a rising problem in the UK. The National Office of Statistics has reported that NFIB fraud increased by 17% in the year ending March 2022 compared with the year ending March 2021. The claimant had filed for a summary judgement against the crypto exchange controlling the wallet in which his stolen bitcoin was transferred into, operating it as a fraudulent crypto-investment company registered in Seychelles.
Is Cryptocurrency an asset?
The Court stated that Cryptocurrency was recognised as property under the English Common Law after (including AA v Persons Unknown [2019] EWHC 3556 (Comm) which was considered quite extensively). The claimant was able to prove that he was the owner of the property in the bitcoin obtained by fraud and as such was traceable in equity and hence was liable to be enforced on the exchange by a constructive trust.
Can the UK courts enforce order against a Crypto-exchange
In the past, the UK courts have issued freezing orders in respect of digital assets such as NFTs, Cryptocurrencies, and other crypto-assets which had been fraudulently acquired or misappropriated through misuse of computers. The problem arises in enforcement of these orders on assets stored on block-chains and the victim has been restricted to enforcement through such exchanges.
How can we help you?
The honest folk of the working class have been duped into investing in crypto assets by fraudsters on the pretext of earning a quick buck only to find that their hard earned monies have been funnelled into untraceable wallets, the anonymity and Decentralised –Finance aspects have proved to be more beneficial to cyber fraudsters rather than actual users/ investors.
The crypto landscape is still largely unregulated, however, our experienced team at Lexlaw has kept itself abreast with the latest changes in the Crypto-landscape to provide our clients with the best possible advice and representation in order to help them get their hard-earned money back. As most of such fraudulent investment companies and exchanges are registered overseas, a victim, such as yourself, may find it quite onerous and almost impossible to identify the fraudster let alone retrieve their lost monies. Our Barristers and Solicitors have decades of experience in dealing with fraudsters to get the victims the help that they need.
If you have fallen prey to cyber fraud, please do not hesitate to contact us, so we can provide you with the best possible advice and help that you may need.