Cryptocurrency fraud: What steps are crucial now?
hire a lawyer now
The legal dimension of cryptocurrency fraud
Cryptocurrency fraud is not only a financial problem, but also a complex legal one. Scammers exploit the complexity of digital currencies to defraud their victims, taking advantage of the legal gray areas that exist in this relatively new field. Their tactics are varied, ranging from fake trading platforms and phishing attacks to direct contact with fraudulent offers spread via social media or private messages.
The legal prosecution of cryptocurrency fraud requires specialized knowledge in both blockchain technology and criminal and civil law. Perpetrators are typically guilty of multiple offenses, including fraud under Section 263 of the German Criminal Code (StGB), computer fraud under Section 263a StGB, and money laundering. However, prosecution is often difficult, especially when the perpetrators operate from abroad.
This article provides important information on how to Cryptocurrency scam You will be able to recognize the situation and understand what legal steps you can take as an aggrieved investor. Understanding the legal aspects is crucial to enforcing your claims and maximizing your chances of recovering your assets.
The statistics are alarming. According to various studies and reports from law enforcement agencies, several billion euros are stolen worldwide each year through cryptocurrency fraud. In Germany alone, experts estimate several thousand cases annually, with the actual number likely being considerably higher. Many victims do not file a report because they are ashamed, don't know who to contact, or don't believe their money can be recovered.
Police and other law enforcement agencies are increasingly confronted with this new form of crime. However, investigations are complex, time-consuming, and require specialized knowledge. This is where the importance of a specialized lawyer comes into play, one who not only understands the legal aspects but also the technical context and can collaborate with crypto forensic experts.
Enforce legal claims in just 3 steps
Simple, convenient & fast – we enforce your rights.
commissioning
Give us your mandate easily and conveniently via online form from home.
1lawsuit & trial
We will take care of all the remaining steps for you. Sit back and relax.
2Success
We will successfully enforce your claim and you can enjoy the success immediately.
3Typical methods used by cryptocurrency fraudsters
Fake trading platforms are a key tactic in cryptocurrency fraud.
A common method is the creation of professional-looking platforms that mimic reputable cryptocurrency exchanges. These fake platforms are often so well-made that even experienced investors cannot recognize them as fraudulent at first glance. They offer all the features one would expect from a genuine trading platform: real-time quotes, interactive charts, news feeds, analytical tools, customer support, and a professional design.
Contact via Social Media, Messenger and dating apps
Potential victims are lured to these sites through targeted advertising on social media, search engines, or financial websites. In many cases, however, contact is made directly via private messages on platforms such as Facebook, Instagram, LinkedIn, WhatsApp, or through dating apps like Tinder or Bumble. The scammers often use profiles with stolen photos of attractive people and fabricated success stories to gain trust.
Unrealistic return promises as a warning sign of cryptocurrency fraud
There, they are promised high returns in a short time. The promises sound tempting: doubling or tripling their capital within a few weeks, guaranteed profits without risk, exclusive investment opportunities accessible only to a select few, or insider information that supposedly leads to extraordinary profits. These promises contradict all principles of sound investment and are a clear warning sign.
Initial payments to build trust, followed by a blockade.
To gain trust, smaller payouts are often offered initially. This tactic is particularly insidious because it lulls victims into a false sense of security. Those who receive an initial small payout believe the platform is legitimate and subsequently invest significantly larger sums. The fraudsters calculate precisely how much they need to pay out to solidify trust and how much additional deposits they can generate as a result.
However, as soon as larger sums are invested, investors lose access to their money and data. Suddenly, registration no longer works, the website is no longer accessible, or new fees and payments are constantly demanded before a withdrawal is possible. The perpetrators then become unreachable, and all contact ceases. Emails go unanswered, phone numbers are no longer in service, and the supposed advisors have vanished.
It is important not to be blinded by such promises and to carefully examine the legitimacy of companies and platforms. Reputable providers are regulated, transparent about their identity and location, and they do not promise unrealistic returns. They also point out the risks of investments instead of only emphasizing the opportunities. They hold a valid license from BaFin or another recognized financial supervisory authority.
Detect, prevent, and recover crypto fraud
Cryptocurrencies offer opportunities – but scammers aren't sleeping either. In our article, you'll learn:
- Which typical scams are currently circulating
- How to recognize warning signs early
- What legal steps are possible to recover losses
Benefit from valuable tips from our experts and protect your investment sustainably.
The legal challenges of cryptocurrency fraud
The legal prosecution of cryptocurrency fraud is particularly challenging for several reasons. First, perpetrators often operate from abroad, frequently from countries with weak law enforcement or no extradition treaties with Germany or the EU. This makes prosecution difficult and time-consuming. International requests for legal assistance can take months or even years.
Even when the perpetrators are identified, enforcing civil claims is often problematic. The perpetrators typically have no seizable assets in Germany, and international enforcement proceedings are lengthy, costly, and often unsuccessful. Furthermore, the perpetrators have often already converted the stolen funds into other assets or hidden them in countries where they are difficult to access.
Another problem is gathering evidence. Victims must prove that they were indeed defrauded and that the perpetrators acted intentionally. This requires meticulous documentation of all transactions, communications, and other relevant data. However, many victims have not secured all the necessary evidence or do not know which information is relevant.
The pseudonymity of the blockchain presents a further challenge. While all transactions are publicly viewable, the identities behind the wallet addresses are not readily apparent. Furthermore, perpetrators use various techniques to cover their tracks, such as mixers or tumblers, which mix cryptocurrencies with those of other users, or privacy coins, which offer additional layers of anonymity.
Your lawyer for cryptocurrency fraud
If you have fallen victim to cryptocurrency fraud, swift action is crucial. First, secure all evidence, such as emails, chat logs, platform screenshots, transaction data, wallet addresses, and any other relevant information. This evidence is essential for both law enforcement and any potential civil claims.
File a police report immediately. This is an important first step, even though the chances of success may be limited due to the international nature of many fraud cases. Reporting the crime to the police is important not only for prosecution but also for potential insurance claims or tax deductions. It also helps the authorities gain a comprehensive understanding of the fraud cases and potentially identify patterns.
As a lawyer specializing in representing victims of crypto trading fraud, RU.LAW offers comprehensive support to defrauded investors. We help you trace the cryptocurrency transactions, identify the perpetrators, and legally enforce your claims for the return of your lost euros. Don't hesitate to seek professional help to protect your rights.
Our services begin with a thorough analysis of your case. We examine which legal steps are possible and advisable, what claims exist, and how the chances of success can be assessed. In doing so, we consider both criminal and civil law aspects, as well as tax issues. We take the time to fully understand your case and develop a tailored strategy.
We also examine whether claims exist against third parties. In some cases, banks, payment service providers, or cryptocurrency exchanges have violated their due diligence obligations and can therefore be held liable. Even if such claims are not always enforceable, it is worthwhile to explore all possibilities. We leave no option unexamined.
Furthermore, we advise you on tax matters. Losses from fraud offenses may, under certain circumstances, be tax-deductible, which can at least partially compensate for the damage. If necessary, we collaborate with tax advisors to find the optimal solution for your situation. Tax regulations are complex, and we help you explore all available options.
If you Victim of a cryptocurrency scam If you have become a victim of legal injustice, please do not hesitate to contact us. We offer a free initial consultation in which we will review your case and outline the possible steps you can take. With RU.LAW, you have an experienced partner at your side who will do everything in their power to enforce your rights and protect your interests. to recover lost money. Don't be discouraged – in many cases there is hope, and we are here to help you.
Professional advice & support
We offer you professional and comprehensive initial advice on crypto fraud. Seize your opportunity and avoid mistakes.
