Call us 0333 370 4333
15/07/20

The Civil Crossover with Cryptocurrency Fraud

Share

Tim Thompson of Kangs Solicitors now outlines the civil remedies open to those who have been subjected to Cryptocurrency Fraud.

Our award-winning team of solicitors is nationally recognised for its work in financial investigations including cryptocurrency investigations and prosecutions.

Recent Developments | Cryptocurrency Solicitors

The courts have recently provided some helpful clarity on the legal status of cryptoassets.

Recent High Court cases have confirmed that civil remedies may be exercised in the recovery of misappropriated cryptoassets.

The Legal Status of Cryptoassets | Civil Litigation Solicitors

On 18 November 2019, the UK Jurisdiction Taskforce of the Law Society’s LawTech Delivery Panel (‘UKJT’) stated that cryptoassets are “sufficiently permanent or stable to be treated as property” under English law.

Five key characteristics of Cryptoassets were identified with the fundamental feature being that of proprietorship and the fact that cryptoassets are capable of being owned.

As a result of the UKJT’s statement, the High Court has acknowledged that Cryptoassets / Cryptocurrency can be owned resulting in various civil remedies being granted to those who have sought them.  

Civil Remedies in Crypoasset Cases | Kangs High Court Solicitors

Asset Preservation Order (APO)

An APO is an Order made by the Court designed to preserve assets to prevent a party from removing assets located in England and Wales or dealing with assets wherever they are located.

An APO is a helpful tool when the respondent’s identity is unknown, which is often the case in Cryptocurrency fraud.

Freezing Injunction

A Freezing Injunction is a Court order which prohibits a party from disposing of or dealing with its assets.

The applicant for a Freezing Injunction, will have to satisfy the Court that:

  • there an existing cause of action
  • there is a good arguable case
  • the respondent has assets
  • there is a real risk of dissipation.

Unlike an Application for an APO, the respondent has to be identified therefore, if in a Cryptoasset fraud, the respondent is known, a Freezing Injunction may be more appropriate.

Proprietary Injunctions

A Proprietary Injunction prevents a person from dealing with assets in which the claimant has a proprietary interest and is very similar to that of a Freezing Injunction.

However, a Proprietary Injunction is particularly effective if the applicant can show that there is an arguable case that all of the respondent’s assets belong to him. It is not necessary to show that there is a risk of dissipation.

Who Can I Contact For Help?

Our civil and criminal teams are accustomed to supporting clients seeking advice of either a civil or criminal nature concerning an APO, Freezing Order or Injunctive Proceedings.

We welcome enquiries by telephone or email.

We provide an initial no obligation consultation from our offices in London, Birmingham and Manchester.

Alternatively, we provide initial consultations by telephone or video conferencing.

Please feel free to contact:

Hamraj Kang

Email Hamraj

07976 258171

020 7936 6396

0121 449 9888

Stuart Southall

Email Stuart

0121 449 9888

020 7936 6396

0161 817 5020

Tim Thompson

Email Tim

0121 449 9888

020 7936 6396

0161 817 5020

Financial Investigations, Tax & HMRC
HM Revenue & Customs (HMRC) is entitled, where it suspects irregularities in an individual’s tax affairs, to pursue a civil procedure known as a Code of Practice 9 (COP9). This provides an alternative to a criminal investigation that could ultimately lead to prosecution. Under COP9, HMRC provides the taxpayer an opportunity to make a full […]
12/11/26
Account Freezing Order, Financial Investigations, POCA
KANGS has successfully secured, on behalf of our client company, the setting aside of Account Freezing Orders (AFOs) obtained by the Metropolitan Police Economic Crime Department against two of its bank accounts. The accounts held approximately two hundred and ninety -one thousand pounds, representing the residue of loans totalling six hundred and fifty thousand pounds, […]
09/11/26
ADR & Mediation, Financial Investigations, Insolvency, Tax & HMRC
In a previous article ‘KANGS Successfully Appealed an HMRC Personal Liability Notice Out of Time,’ we explained how we assisted our client obtain permission to Appeal a Personal Liability Notice, issued by HMRC even though the permitted time for doing so had expired by several months. Since that permission was granted, the team at KANGS […]
06/11/26

Get in touch

Need legal assistance? Contact our experienced team for prompt and professional support.
Your privacy is important to us and all details you share will be kept confidential.

Send an enquiry

    This form is protected by Cloudfare Turnstile.
    Privacy Policy.

    Old map of Birmingham
    0333 370 4333