Proceeds of Crime Act – a landmark civil recovery

In this first-of-a-kind case, law enforcement, worked in tandem with the private sector, deploying powers to trace and freeze assets and leveraging rights to recover funds on behalf of victims, to secure a full recovery.

The challenge

A pensioner and full-time carer for his wife lost savings of £520,000 in November 2024 when his digital assets were misappropriated by a fraudulent digital asset investment platform. 

The police were engaged initially and were able to trace and freeze significant assets connected with the fraud, at a centralised cryptocurrency exchange.

We were subsequently engaged by the victim's solicitors to provide a detailed digital asset tracing report in support of the client’s application to repatriate the frozen digital assets through an application of s.303Z51 of the Proceeds of Crime Act 2002 (POCA).

How we helped

We played a pivotal role in securing a full recovery under the recently enacted s.303Z51 of POCA.

Our blockchain analytics team traced the movement of the digital assets from the client's wallet address to recipient exchanges, and then from the exchange to private addresses holding stablecoins, which were attributable to the client’s loss. The tracing exercise used blockchain analytics tools, including Chainalysis Reactor, as well as open-source data.

Our report, methodology, forensic principles and findings were relied on by the client in their application to court.

The results

Having successfully traced the payment, we collaborated closely with solicitors and counsel to support the litigation strategy and strengthen the client’s applications to the exchanges and stablecoin issuers.

As a result of this effective public-private collaboration, the client will receive a full recovery of his loss. 

This case not only shows the value of our blockchain analytics capabilities but it also demonstrates the effectiveness of this new legislation in disrupting criminal activity and money laundering.