Cryptocurrency Investment Fraud in London

Updated on Thursday 07th November 2019

Rate this article
based on 3 reviews

Cryptocurrency Investment Fraud in London Image
Cryptocurrency investments are for sure important parts of a businessman’s portfolio, regardless of the country of origin. Unfortunately, the business climate is vulnerable to frauds and scams of any kind, and cryptocurrency makes no exception. Our criminal defence lawyers in London are at the disposal of anyone looking for legal advice if they face cryptocurrency investment fraud accusations. The same thing is available for victims of such frauds who can benefit from our complete legal support.

Cryptocurrency frauds – how does the mechanism work?

In most of the cases, cryptocurrency fraudsters are aware of the people’s greed when it comes to money and fast profits. This is the main engine in a financial fraud of this kind and scammers have different plans through which they turn investors into real victims:
  1. The Ponzi scheme is often the type of fraud related to cryptocurrency.
  2. Investment strategies with daily returns are promised to investors interested in cryptocurrency businesses.
  3. False telemarketers have access to a large database of local or foreign investors with interests in cryptocurrency.
  4. Victims are convinced to open cryptocurrency investment funds in exchange for big financial returns.
  5. Fraudsters will then withdraw different amounts of money and then disappear.
When it comes to cryptocurrency investment scams, fraudsters are extremely convincing, even on social media channels. For complete credibility in front of investors and potential victims, some might use professional videos, tutorials, pictures, testimonials, reviews, and genuine declarations to convince people about cryptocurrency investments. Regrettably, numerous persons believe they have a chance to gain even more profits and to prosper in their field. If you believe you have been fouled by an investment fraudster, it is recommended to talk to a criminal defence lawyer in London and ask for immediate legal advice. An investment fraud solicitor in London has experience in this field and can provide support and representation for your case.

Initial coin offerings – new scams on the rise

It is a fact that the financial sector is vulnerable to frauds of any kind. The same goes for initial coin offerings and the investment opportunities that seem real in the first place. The fraud starts with varied investment opportunities related to initial coin offering for persons wanting to start a cryptocurrency company and raise money. In exchange for dispatching real cryptocurrencies like Bitcoin or Ethereum, clients are guaranteed a deduction on the new crypto coins, the starting point of scams. Fraudsters can go further with their plans and scams, and can even rent offices, create marketing materials and send very professional emails to potential investors. Unfortunately, there are many entrepreneurs, mostly the ones with not that much experience, who believe they can make easy money and raise their profits without taking into consideration the risks in this field. You should talk to a criminal solicitor in London and ask for legal advice if you have been a victim of cryptocurrency or initial coin offering frauds.

How can we avoid cryptocurrency investment frauds?

The investment field is for sure vulnerable to frauds and related money scams, and businessmen should pay complete attention to the appealing investment opportunities that might arise from nowhere. It is recommended to have some investigations and verifications before making cryptocurrency investments and ask for experts to work for you. Investors with not that much experience but interested in making easy money should verify the business plans presented over the phone or email and search for the companies or persons who provide information about the huge investment opportunities that knock at the door. Staying alert in front of frauds help investors keep their money safe, particularly in the cryptocurrency field that continues to develop on a daily basis, alongside all sorts of scams. We have gathered information and facts about frauds in Uk that you might find it interesting:
  • According to the UK’s Financial Conduct Authority, GBP 14,600 is the average loss due to cryptocurrency and investment scams, on a yearly basis;
  • Approximately GBP 27 million represented cryptocurrency fraud losses in the past two years;
  • Around 1,834 cryptocurrency scams were reported in 2018;
  • Fraudsters can even use fake celebrity endorsements to convince businessmen to make investments.
You are invited to call our team of criminal defence solicitors in London and ask for legal advice if you have been accused of cryptocurrency investment frauds or if you have been a victim of such crime.