Cryptocurrency Fraud
Fraud allegations are the most difficult, complex and time-consuming cases to defend.
Fraud cases can often be won or lost at the investigation stage and before charge. What occurs in the early stages of an investigation can influence whether the matter leads to charge and in some cases, conviction.
In simple terms, cryptocurrency is a digital currency that makes use of cryptography to ensure transactions are secure. In addition to operating as a medium of exchange, some users view the purchase of cryptocurrencies as an investment, and numerous exchanges have been set up to facilitate the trade in such digital assets.
Cryptocurrency transactions are underpinned by blockchain technology, which creates a permanent and unalterable online ledger of every transaction made using the currency. Bitcoin is the first and most widely used cryptocurrency, and it is in fact possible to view every Bitcoin transaction that has taken place since its launch in 2009.
Examples of cryptocurrencies include:
- Bitcoin
- Ethereum
- Ripple
- Dash
The main criminal offences relating to cryptocurrency are fraud and money laundering. As the usage of legitimate cryptocurrency is increasing, the amount of crypto crime has in fact been reducing. In 2020, crypto crime reduced by 57% in 2020 compared to 2019.
In 2020, $3.5 billion worth of bitcoin was sent from criminally associated bitcoin addresses relating to the dark market, ransomware actors, hackers and fraudsters. This bitcoin will need to be laundered, meaning it will be included in an exchange where it can then be converted into other currency and transferred to a bank.
Action Fraud data shows that UK crypto fraud rose by a third in one year, with financial losses involving crypto hitting £226m in the year to September 2022- a 32% year-on-year increase. More than 10,000 crypto fraud reports were made this year, a 16% rise on 2021.
HMRC has made their stance very clear in relation to cryptocurrency. Using crypto is not a way for people to avoid paying tax that would ordinarily be due had the transaction be made in currency such as the British pound. VAT, income tax, corporation tax and capital gains tax will still apply. HMRC appreciates that as crypto becomes more popular, the risk of money laundering and non-compliance with HMRC’s tax regulations, as well as the FCA’s financial regulations, becomes more increased.
We have defended clients accused of numerous scams relating to cryptocurrency including;
- romance frauds
- phishing
- mis-selling of investment schemes; or
- theft of currency from online wallets.
Being faced with allegations of cryptocurrency related offences is a very serious matter. The potential consequences of such allegations can result in lengthy sentences of imprisonment, as well as the damage it can cause to you and the reputation of your business. Given that this is a fairly new area and the law and regulations continuously change, it is understandable that genuine mistakes may be made. This means you need a team of legal experts who understand the complex intricacies of the allegations and the law to defend you.
We're here to Defend You
Meticulous case preparation is the key to ensuring positive outcomes for our clients.
We relish the prospect of solving clients problems. We devise strategies, prepare meticulously, and leave nothing to chance. We will defend our clients rights with all our ability and determination. While our clients legal issues will be peculiar and unfamiliar to them, our expert lawyers have decades of invaluable experience to rely upon.We create a reassuring and protective environment, while working tirelessly to meet objectives. Our work will demonstrate our commitment to our clients and will validate the trust clients place in us. Potter Derby Solicitors do not wish to garner fame or publicity. We recognise that confidentiality of our clients cases is of the upmost importance. That is why most of our success stories will forever remain untold.
Specialist Fraud and Financial Crime Defence Solicitors
Potter Derby Solicitors are a criminal defence firm who are regularly instructed to defend people in police stations and Courts throughout England and Wales.
Evidence relating to financial crime is both comprehensive and sophisticated, only a small selection of criminal defence firms has the specialist expertise and ability to properly defend in these matters. Potter Derby is one of them.
We have secured our reputation as recognised experts at preparing criminal defence work to such a high standard over time, through working with the industry’s leading Kings Counsel and being consistently instructed in the largest and most complex cases seen in Courts throughout England & Wales.
From defending allegations of international boiler room frauds, multi million pound mortgage and VAT fraud, to inter-continental drug & firearms conspiracies to politically motivated offences. Our experience in defending the largest cases is second to none. The ethos from the start is to offer a bespoke service tailoring what we do to the specific natures of the case.
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