A crypto fraud network has been launched by members of some of the preeminent law firms in the UK, including Grant Thornton and Osborne Clarke.
The ‘Crypto Fraud and Asset Recovery’ (CFAAR) network was set up by leading industry professionals with the end goal of developing best practice with regards to cryptocurrency fraud and aims to become a key spokesgroup for crypto fraud investigations and asset recovery.
The CFAAR was set up by founding members made up of legal professionals from law firms Grant Thornton, Asset Reality, Essex Court Chambers, Osborne Clarke, Rahman Ravelli, RPC, Stewarts and Twenty Essex.
Former Justice of the UK Supreme Court Lawrence Collins commented on CFAAR’s launch:
“Where there is innovation, criminals are not far behind. The latest example is crypto fraud. Criminal enforcement is not a sufficient remedy for victims. The professions have to arm themselves to help clients who have been the victims of fraudsters who offer unbelievable returns in fake offerings, or who create false cryptoassets and false exchanges, and then hide the proceeds of crime through complex webs. London has long been a pre-eminent financial and professional centre, but unfortunately it may also be turning into a centre for international financial crime. CFAAR is uniquely placed to build networks to develop remedies to prevent exploitation and to assist victims.”
As the number of crypto-related fraud, including ransomware and investment fraud, increases, the scrutiny of cryptocurrencies has increased alongside the innovations within this space. London in particular, known for being a financial hub, has been a central focus for crypto scams and fraudulent activities, as Justice Lawrence Collins noted in his comments on CFAAR’s launch.
Investment fraud has grown during the pandemic, as Sanjay Andersen of the City of London Police’s National Fraud Intelligence Bureau notes:
“Reports of investment fraud have increased significantly since the start of the coronavirus pandemic, which is unsurprising when you think the vast majority of us have had to conduct nearly every aspect of our lives on a computer or mobile phone”.
Rather than being reliant on criminal intervention, the CFAAR network will aim to be an industry voice in the space that can provide advice and legal support to regulatory and criminal bodies with regards to cryptocurrency.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.