Case Background

In early 2024, Mr. Wang (pseudonym) met an "investment expert" on social media. The other party claimed to be a senior Wall Street analyst with rich stock investment experience, and recommended a "high-return" stock investment platform to Mr. Wang. Initially, Mr. Wang only invested $5,000 to test the waters, and soon "earned" $2,000 in profits on the platform and successfully withdrew the money.

After tasting the sweetness, Mr. Wang increased his investment amount under the constant encouragement of the other party, investing a total of 800,000 US dollars. However, when he tried to withdraw the money, the platform refused to withdraw the money on the grounds of "account abnormality" and "extra taxes need to be paid", and eventually lost contact. Mr. Wang realized that he had been deceived and immediately sought legal assistance.

Rights protection process

Step 1: Case analysis and case filing

After Mr. Wang found us, our legal team immediately launched an investigation and confirmed that the platform was a typical fake stock trading platform (fraudulent website). The platform created a false profit through forged K-line charts and account balances to attract victims to increase investment. The legal team quickly collected relevant evidence, including transaction records, chat records, transfer vouchers, etc., and formally filed a case.

Step 2: Tracking the flow of funds

Our financial investigation team used blockchain tracing technology and international bank tracking systems to analyze the flow of funds and found that the fraud group used multiple "money laundering accounts" to disperse funds and transferred most of the funds to offshore banks. We immediately contacted the relevant financial institutions to apply for fund freezing.

Step 3: Legal proceedings and cross-border cooperation

As the fraud platform involved multiple countries, we worked with Interpol, financial regulators and local law enforcement agencies to initiate legal proceedings in the location of the fraud group. At the same time, we submitted fraud reports to payment processors and banks and successfully froze some of the accounts involved.

Step 4: Recover funds

With the efforts of many parties, we finally helped Mr. Wang recover about 80% of the defrauded funds (US$640,000), and continued to follow up on the recovery of the remaining funds. In addition, the law enforcement agency successfully identified some core members of the fraud gang and launched further investigation.

Case Summary

Stock fraud schemes revealed

Fake experts induce investment: Fraudsters use social media, WhatsApp and other platforms to pretend to be "financial experts" and recommend fake investment platforms.

Withdraw small amounts in the early stages to gain trust: Victims can successfully withdraw small amounts of funds at the beginning, lowering their vigilance.

Additional investment, funds defrauded: After the victim increased the investment amount, the fraud platform refused to withdraw cash for various reasons.

Disappear and run away: When the fraud amount reaches the target, the fraudsters completely lose contact or shut down the platform.

Lawyer’s advice: How to prevent stock fraud?

Verify platform qualifications: Formal securities trading platforms are supervised by financial regulatory agencies and can be checked on the official website.

Be wary of promises of high returns: Stock investing is risky, and any promise of "guaranteed profit" is a scam.

Avoid private transactions: Do not transfer money to personal accounts or unknown third parties. Formal platforms conduct transactions through official channels.

Protect your rights and recover your losses as soon as possible: If you find that you have been defrauded, you should collect evidence and seek help from a professional lawyer as soon as possible. The earlier you do it, the greater the possibility of recovering your funds.