Case Background

Mr. Li (pseudonym) is a senior investor who is very interested in the cryptocurrency market. In early 2024, he met a "digital currency investment expert" on social media. The other party claimed to be an analyst of a well-known investment institution, who had internal market information and could provide high-return investment opportunities.

Under the guidance of the other party, Mr. Li joined a special investment exchange group. Group members posted "profit screenshots" one after another, claiming that they had made huge profits through the guidance of the expert. This gradually made Mr. Li relax his vigilance and decided to try investing. Initially, he bought $100,000 worth of Bitcoin on a trading platform according to the guidance and successfully withdrew part of the profit, which further strengthened his trust.

Later, the expert recommended a "more advanced" investment project to Mr. Li, promising to double the return in a short period of time. Encouraged by the other party, Mr. Li invested 1.5 million US dollars. However, when he tried to withdraw the funds, the platform suddenly froze the funds on the grounds of "account risk control" and required a 30% deposit to unfreeze them. Mr. Li realized that something was wrong and immediately sought legal help.

Rights protection process

Step 1: Case analysis and case filing

After receiving Mr. Li's request for help, the legal team immediately launched an investigation and found that the investment platform had not obtained any license from any legal financial regulatory agency and was a typical fake exchange scam. The platform manipulated the user's backend data to create the illusion of profit, which convinced the victims and eventually induced them to invest large sums of money.

After confirming the fraudulent nature of the platform, the legal team helped Mr. Li organize relevant evidence, including all transfer records, transaction screenshots, chat records, etc., and formally filed a case.

Step 2: Tracking the flow of funds

Our blockchain experts used professional tracing tools to track the flow of cryptocurrencies and found that the funds were transferred to multiple wallets in a short period of time and eventually flowed into a cryptocurrency exchange in Southeast Asia. Subsequently, we sent a legal letter to the exchange and contacted international anti-money laundering organizations and local law enforcement agencies to apply for the freezing of related accounts.

Step 3: Legal proceedings and cross-border cooperation

Since the case involved multiple countries, we worked with Interpol, multinational law firms and financial regulators to initiate legal proceedings against the fraud gang. At the same time, the legal team communicated with the compliance department of the exchange, provided a detailed chain of evidence, and successfully froze part of the funds involved in the case.

Step 4: Recover funds

Thanks to the efforts of the legal team, we successfully helped Mr. Li recover $1.2 million out of the $1.5 million, with a recovery rate of 80%. The remaining funds are still being recovered, and some members of the fraud gang have been identified by law enforcement agencies, and the case is under further investigation.

Case Summary

Common Cryptocurrency Scams

Disguise as an investment expert to build trust on social media or in investment exchange groups.

By creating the illusion of profit, victims are made to believe that they can make money easily.

After the victims invested more money, the platform suddenly restricted withdrawals and required additional payment of "unfrozen funds" or "taxes."

Once the victim discovers the problem, the fraud gang quickly closes the platform or loses contact, resulting in complete loss of funds.

Lawyer's Advice: How to Protect Yourself from Cryptocurrency Scams

Before investing, always verify the legality of the trading platform and check whether it is regulated by a financial regulator.

Don't trust investment "experts" on social media, they are often part of a scam.

If the trading platform makes additional charging requirements, such as "account thawing fee" or "margin", you should be alert immediately.

Once you are 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.

If you or someone around you has encountered a similar scam, please contact our legal team immediately to start the rights protection process and recover your losses!