In the burgeoning world of cryptocurrency investments, the collapse of Miracle World Ventures Ltd, trading as Globix, illustrates the risks inherent in digital asset mismanagement – and the complexities of navigating digital asset recovery and insolvency.
The challenge
Globix, led by a sole shareholder and director, attracted numerous investors, including high-profile individuals, with the expectation of substantial returns. Operating from Gibraltar, the BVI-registered company promised a daily 1% return through algorithmic trading.
However, following an alleged theft, its sudden liquidation in March 2023 left an estimated $43 million deficiency.
The company functioned without conventional financial records, depending instead on blockchain transactions and over-the-counter (OTC) trading across multiple exchange accounts. This presented formidable obstacles to the liquidators who engaged us to track the digital asset funds flow and support the development of an investigative strategy.
How we helped
We played a pivotal role in the liquidation and investigation of the company by:
- using our expertise to navigate the complexities of digital asset recovery and financial forensics
- supporting the investigation strategy
- tracing digital assets.
Our forensic analysis involved reconstructing the company’s financial history by analysing tens of thousands of blockchain transactions.
The results
Collaborating with exchanges and legal advisers, we supported the liquidators in obtaining crucial disclosures. We also provided technical support during public examinations.
Through our first-hand knowledge of the investigative powers of liquidators, their duties, and the available remedies under insolvency legislation in different jurisdictions, we were able to significantly contribute to the case strategy and, ultimately, assist in identifying the best routes to recovery.
