- London Police and law firm Gowling WLG launched a civil asset recovery program for fraud victims, including cryptocurrency scams.
- The initiative follows a successful pilot recovering £2 million for an elderly fraud victim, and will operate in cases where criminal prosecution isn’t possible.
- Recent legal updates to the Proceeds of Crime Act have enhanced authorities’ ability to freeze stolen digital assets, facilitating cryptocurrency recovery efforts.
City of London Police has formed a partnership with legal firm Gowling WLG to establish a civil asset recovery program aimed at helping fraud victims reclaim lost funds. The initiative follows a successful pilot case where assets were recovered for an elderly victim who had lost £2 million in a cryptocurrency scam.
The program specifically targets situations where criminal prosecution isn’t feasible but civil recovery remains possible. According to Gowling Director Bríd Holden, the partnership aims to “investigate and support victims to recoup monies lost to such frauds” while also encouraging more victims to report incidents.
This initiative comes at a critical time when cryptocurrency scams alone cost victims globally $9.9 billion in 2024, as reported by Chainalysis. Detective Chief Inspector Craig Mullish noted that financial losses from fraud “can have a lasting effect on victims,” highlighting the importance of asset recovery beyond just criminal prosecution.
Recent Recovery Successes
The UK has seen promising results in cryptocurrency recovery efforts. Just last week, British police working with law firms recovered over £520,000 (approximately $670,000) in cryptocurrency that had been stolen from an 80-year-old victim.
These recoveries have been made possible by recent updates to the Proceeds of Crime Act 2002, which now give authorities the power to freeze stolen digital assets. This legal enhancement creates a stronger foundation for collaboration between police forces and legal specialists.
The Need for Specialized Expertise
Not all legal firms possess the specialized knowledge needed for cryptocurrency asset recovery. Last September, a case was filed against Wealth Recovery Solicitors by a victim who lost £635,000 in a crypto fraud. The legal firm allegedly lacked expertise to properly trace stolen cryptocurrency.
Ashley Fairbrother of Edmonds Marshall McMahon, who participated in a recent crypto recovery case, told Decrypt that collaborative efforts between police and legal specialists are essential to address the “endemic fraud problem” in the UK.
Fairbrother emphasized that these partnerships give “this country a fighting chance in the battle against fraud,” helping victims while simultaneously disrupting criminal networks by seizing their stolen digital assets.
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