The challenge
As crypto‑asset scams and laundering techniques become more sophisticated, asset recovery professionals must continue to develop the methodologies and legal remedies needed to counter criminal activity effectively. Successful outcomes increasingly depend on combining specialist private‑sector capability with public‑sector powers to investigate, secure and ultimately recover digital assets before they are dissipated beyond reach.
We were engaged to support the recovery of close to USD 900,000 for the victim of a romance scam. The matter was a cross‑border effort, involving forensic blockchain analysis and more than 18 months of dogged work by lawyers and US law enforcement to bring about.
How we helped
The facts
In May 2024, our Digital Asset Recovery team was instructed on an urgent basis by Ashley Fairbrother, partner at Edmonds Marshall McMahon (EMM), to assist a client who had lost almost USD 1 million of her pension savings to a sophisticated romance scam.
The victim had been deceived by an individual she met via a dating platform who, through the use of deep‑fake video calls and forged documentation, convinced her he was a wealthy, well‑connected diplomat. Over time, the fraudster engineered a series of urgent, high‑pressure requests for funds, which the victim paid in a succession of crypto‑asset transfers.
Investigation and tracing
Our immediate priority was to trace the stolen assets on‑chain. We identified that a significant proportion of the proceeds were being held in USDT (Tether) across a number of addresses. Although some funds were being slowly dispersed in small transactions, a money laundering technique known as 'smurfing', a substantial balance remained.
Alongside blockchain analysis, we used image‑matching tools to identify the real individual whose images had been used to create the fraudster’s fake identity. These images belonged to an Italian politician and had been repurposed to create convincing deepfake video calls with the victim.
Legal strategy and recovery
EMM combined our forensic report with the victim’s evidence and engaged promptly with US law enforcement and Tether’s legal team. The objective was to secure Tether’s cooperation to blacklist the addresses holding the misappropriated USDT, preventing further transfers, and to pursue a ‘burn‑and‑remint’ remedy - issuing replacement tokens equivalent to those blacklisted, to be returned to the victim.
Through persistence and the skilful deployment of US civil recovery legislation, EMM and US authorities ultimately recovered nearly USD 900,000 for the client.
The results
Key takeaways
Two points stand out:
1. AI‑enabled fraud is accelerating.
Generative AI has materially lowered the barrier for fraudsters to create convincing websites, social profiles, documents, images and video. These tools are not only used to deceive but increasingly to intimidate, coerce and manipulate victims. Sharing real‑world case studies plays an important role in improving detection and reducing victimisation—particularly among vulnerable or high‑value targets.
2. Public‑private collaboration is critical.
Early engagement between forensic specialists, civil litigators, law enforcement and VASPs markedly improves recovery prospects. Strategic use of civil remedies alongside criminal investigative powers can be decisive in disrupting laundering activity and preserving recoverable value.
