Recovering losses from crypto fraud: our London team can help

In recent years, the general awareness of the existence of Cryptocurrency has skyrocketed, to the extent that many people have at least heard the term. In terms of ownership of Cryptocurrency, this has enjoyed a similar surge with recent data suggesting that 24% of UK adults now own some form of Cryptocurrency (up from 18% from a year ago). There has also been an explosion in the number of platforms and methods of buying cryptocurrencies, serving this increase in demand.

Unfortunately, this growth does not only attract those seeking a legitimate opportunity to service the market. It may not be surprising that there is correlation between the increase in UK adults owning, or seeking to own, cryptocurrencies and fraud incidents. Over 2024, there was a 33% rise in investment fraud incidents.

For those who have fallen victim to crypto fraud, the path to recovery can seem daunting. However, with the right guidance, it is possible to trace funds, pursue legal remedies, and work towards recovery. Our London-based team has extensive experience in cryptocurrency fraud investigations, enabling us to act swiftly and strategically on behalf of clients.

Cryptocurrency represents a particularly attractive market to fraudsters, for several reasons:

1. The aggressive growth of this relatively new market has outpaced regulation, meaning that it is easier for fraudsters to establish purportedly authentic platforms.
2. Indeed, one of the leading principles of cryptocurrencies is that they are decentralised, meaning they are not governed by a single overriding authority (such as a central bank). This makes regulation and recovery significantly more difficult, both of which are benefits to fraudsters.
3. Fundamental understanding of cryptocurrencies is significantly lower than compared with traditional currencies (known as fiat). This means that people are more vulnerable to fraud as they almost suspect to be confused. In fact, this is likely one of the reasons that they are trusting the fraudster in the first place.
4. Despite transactions being recorded on the blockchain, sophisticated fraudsters can make the tracing of stolen assets extremely difficult and expensive for victims.

Have you fallen victim to a cryptocurrency scam?

As digital assets become more mainstream, so too have sophisticated crypto fraud schemes. From fake exchanges to elaborate impersonation scams, thousands in the UK are affected each year.

While our cryptocurrency fraud specialists are able to assist in circumstances where you have been a victim, it will be no surprise that prevention is better than cure. Accordingly, knowing some key information about the common types of cryptocurrency fraud can assist you in identifying red-flag behaviour as early as possible.

Fake investment platforms

Combined with the significant rise in the use of AI, fraud of this nature has become very prevalent. Fraudsters attract those looking to invest in crypto through the use of fake adverts, often featuring a video of a well-known public or financial figure. High returns on investment are promised, which seem believable given that cryptocurrencies are typically volatile assets, and victims are provided with a fake platform to demonstrate this happening in real-time.

Key red flags:

• Endorsements by high-profile public figures resulting in regular contact from an “investment manager”.
• Being placed in situations of high pressure or stress to make a decision, with a risk of losing money as a result.
• Assistance with converting normal (fiat) currency into cryptocurrency, so this can be deposited in a shared wallet which the fraudster also has access to.
• Apparent large returns on investment in a short period of time.
• Requirements to deposit further amounts in order to withdraw purported returns or initial investment.

Rug pulls & pump-and-dump schemes

Rug pulls are crypto scams where developers abandon a project after attracting investors, taking the funds and leaving worthless tokens behind. Pump-and-dump schemes involve artificially inflating the price of an asset through misleading hype, then selling off at the peak, causing the price to crash and leaving other investors with losses. Both exploit investor trust and lack of regulation in digital markets.

Key red flags:

• Any token which is due to be launched for the first time comes with risk of being one of these schemes.
• Sudden, extensive hype with limited substantive reasoning as to why.
• Inability to verify the individuals behind the token.

Phishing scams

Scams of this nature are not specific to cryptocurrency, but fraudsters will tailor their deception accordingly. Phishing scams are where fraudsters will pose as legitimate companies to try and trick you into providing actual account information, or making payments to them.

Key red flags:

• Check the full address of any email correspondence for any typos, especially in the domain name.
• Messages often contain generic information which may be true for a broad range of individuals.
• It is very rare for legitimate entities to ask for full account information or to require lumpsum payments.

To summarise the above types of cryptocurrency fraud, and financial fraud more generally, the long-held mantra of “if something is too good to be true, it probably is” remains sound advice. Where this is the case, or you are being placed under pressure to deposit fund of any nature, take time to investigate and consider whether the situation is legitimate.

Immediate steps if you think you have been a victim of fraud

If you suspect you have been defrauded, do not delay. Taking swift, informed action can significantly increase your chances of recovery.

1. Stop all further payments – Do not send any more money or crypto, even if the fraudster is promising a refund or “final payment.”
2. Gather all evidence – Save emails, transaction records, wallet addresses, screenshots, and any communication you had with the scammer.
3. Report the fraud – Contact Action Fraud (UK) or your local authority. This step is important for both recovery and broader investigation efforts.
4. Speak to your bank – If you transferred fiat currency (e.g., GBP), your bank may be able to initiate a recall or help with fraud investigations.
5. Consult a crypto recovery expert – Legal advice from professionals experienced in crypto asset recovery can help you assess your options and act decisively.

Can lost crypto be recovered?

Some of the factors set out above which makes cryptocurrency attractive to fraudsters generally extends to creating difficulties in terms of recovery. Despite this, there are circumstances where lost sums can be recovered. The situations where cryptocurrency can be used as a legitimate payment tool remain relatively limited, meaning fraudsters still need to convert stolen crypto into fiat (traditional) currency.

Our specialist London crypto fraud team is experienced in identifying situations where clients have been a victim of cryptocurrency fraud and providing pragmatic advice on the options available to recover lost sums. Initially, the focus is on providing clients with a clear understanding of their prospects and available recovery routes. This is vital before embarking on substantive attempts of recovery, given the costs involved. The team also had a wide network of trusted partners to assist clients, such as in tracing digital assets and to aid with funding in some circumstances.  using the legal system to help victims recover lost funds. If you have been targeted, acting quickly can make all the difference.

If you have lost money to a crypto scam, you do not have to navigate this alone.

Our London-based crypto fraud recovery specialists can assess your case, trace assets, and advise on the best legal strategy to pursue recovery. We offer confidential, no-obligation consultations to help you understand your options and act with confidence, get in touch with the team today.