June 27, 2022
Michael Goodwin QC and Tom Davies of RLC with Adam Craggs and Alice Kemp at RPC look at how individuals can avoid crypto scams and what help the law might be able to give them if they are the victim of a crypto fraud.
The article in Fraud Intelligence looks at:
— The advent of cryptocurrencies, which was hailed as the panacea to centralised, inaccessible and opaque global financial institutions, but for all their innovation, they have proven to come with one very significant side-effect: fraud.
— Today, an ever-growing number of individuals, in their millions, are investing in, trading and acquiring these assets. The sector is no longer the preserve of tech-savvy, Silicon Valley aspirants who are brimming with knowledge of the ‘blockchain’. Therapists, train drivers and teachers alike now invest in cryptocurrencies, perhaps hoping to join the ranks of the many, widely publicised, ‘rags-to-riches’ stories of some of those who were early adopters of cryptocurrencies.
— The rapid uptake of cryptocurrencies by members of the public has exposed the the lack of regulation in the sector. These commodities are simply not regulated as rigorously as traditional financial instruments and markets, yet paradoxically, they often carry greater risk and volatility than many retail investments. This article looks at what has been done, and what’s soon to come, in the regulation of this sector.
— Criminals have seized upon the public’s widened uptake of crypto-assets with vim and vigour. Crypto exchanges, which often hold large amounts of cryptocurrency on behalf of retail investors, promise considerable spoils if hacked. In addition to this, no sooner than a particular innovation in crypto assets is announced, offenders are devising and launching new crypto scams to compete alongside it, as well as converting traditional scams to target or demand cryptocurrencies.
Read article here: