By Alicia Maher
Crypto specialists throughout the United Kingdom’s legal trade announced the launch of the Crypto Fraud and Asset Recovery (CFAAR) network, a community aimed towards offering redress against crypto-related fraudulent activities. The CFAAR is made up of various professionals, like, “lawyers, barristers, forensic accountants, corporate intelligence and asset recovery experts.”
This recent launch of the CFAAR network is associated with the consistent rise in fraudulent activities such as theft, initial coin offerings and ransomware attacks and others. Through a united approach from legal experts, CFAAR’s team aims to “respond robustly and effectively” to crypto crimes and fraud by delivering “the best possible means of redress.”
Crypto Fraud And Asset Recovery (CFAAR) Network
Asset Reality, Essex Court Chambers, Grant Thornton, Osborne Clarke, Rahman Ravelli, RPC, Stewarts and Twenty Essex are the founding members of the U.K.-based crypto legal team, CFAAR. According to the announcement to launch this legal team:
“[CFAAR] include practitioners leading the first crypto-related disputes before the English courts, as well as those actively involved in pioneering approaches to global crypto fraud investigations, forensics, advocacy and the tracing and recovery of crypto assets.”
Though the network still needs further participation from crypto experts, it has explained its intention to stand as “an authoritative and independent voice in crypto-related judicial and regulatory reviews and consultations.” Citing this new launch, former Justice of the U.K. Supreme Court Lawrence Collins said:
“Criminal enforcement is not a sufficient remedy for victims. London has long been a pre-eminent financial and professional center, but unfortunately, it may also be turning into a centre for international financial crime.”
Recent Update on Crypto Crime
A recent report accentuated the oncoming rise and increase in crypto scams and fraud as established by the statistics laid out by the City of London police and the Crown Prosecution Service (CPS). While current findings imply that there is no immediate threat, the CPS measures 86% of the total reported frauds to be cyber-related as citizens continue to choose and use online services.
The report showed that almost 21% of the 27,187 recorded cybercrime were associated with cryptocurrency investments. However, in the bigger picture, cryptocurrency-related crime amounts to just 0.6% of the total 822,276 fraud issues. According to Statista, hacks and threats in the crypto space were 160% higher in 2019 than in 2020, suggesting that over that window, the crypto trading environment had become more mature and able to identify threats easily. The decline was also attributed to the absence of the PlusToken scheme.
More Information on CFAAR
Collins said that criminal enforcement would not remedy for the “victims of fraudsters who offer unbelievable returns in fake offerings, or who create false crypto assets and false exchanges, and then hide the proceeds of crime through complex webs.” The eight founding member law firms pioneering this network intend to make it an industrial voice on crypto-related scams. The practitioners will be leading the center stage for digital asset disputes in the English court system. Notably, the group of law firms is well-known for spearheading crypto fraud investigations, advocacy, and forensics. They also have a reputation for the tracing and recovery of assets.