This case involved a sophisticated investment scam defrauding a private client of £2 million. The fraudsters used advanced diversionary tactics, creating a complex web of deceit to conceal the true extent of the client’s financial losses over several months.
The challenge
In the intricate world of financial fraud, few cases stand out as starkly as this one. Our digital asset team was tasked with unpicking the layers of misinformation that had led the client to underestimate their losses. This case, involving a sophisticated investment scam, highlights the critical role of blockchain analytics and open-source intelligence, and the expertise of firms like ours in navigating the murky waters of financial deception.
How we helped
Utilising a combination of proprietary and manual open-source blockchain analytics tools, the team traced cryptocurrency transactions involving Bitcoin (BTC) and Ethereum (ETH) to active deposit addresses at major cryptocurrency exchanges. This meticulous tracing process revealed that the client had been defrauded of cryptocurrency valued at £1.9 million at the time of the investigation.
The firm’s corporate intelligence team played a crucial part in identifying the true extent of the client’s losses and uncovering the sophisticated tactics used by the scammers. By leveraging both off-chain and on-chain corporate intelligence, we were able to identify several potential routes to recovery.
The results
Our innovative approach, involving advanced investigative techniques and blockchain analytics tools, provided a clear path to recovery for the client.
Working closely with the client and their legal team was essential in navigating the legal complexities of the case, supporting applications for third-party disclosure and freezing orders.
The comprehensive report delivered by our team provided crucial evidence for these legal actions, significantly boosting the client’s asset recovery prospects.
The successful tracing of stolen cryptocurrency and the identification of targets in the UK and Europe underscored the importance of advanced forensic techniques in combating financial fraud.
Our collaborative strategy significantly enhanced the client’s chances of recovering their lost assets, serving as a benchmark for excellence in financial investigation.
