An outbreak of fraud associated with crypto assets has sparked a joint effort by five professional services firms to highlight such matters in front of the courts. Crypto-related fraud reached a peak in 202, with banned addresses that received an estimated US$14bn throughout the course of the year, making it a 79% increase from the previous year.
According to the five firms however, the amount of claims brought before courts regarding these losses are still low, partly due to limited funding options for otherwise worthy lower-value claims. The firms created a joint triage system for the first stage of assessing claims. Deserving claims will be evaluated and financed by litigation funder Sandton Capital, which has allocated £50m for crypto-related litigation.
Other members of the consortium consist of the recovery specialist Asset Reality, accountancy Grant Thornton UK, Outer Temple Chambers and city firm Rahman Ravelli.
Barrister at Outer Temple Chambers, Justina Stewart, commented: ‘This is a real opportunity to push the boundaries of the law by working symbiotically with true experts. All too often, potentially meritorious crypto fraud claims don’t get off the ground because of lack of funding and joined-up thinking between real specialists.’
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