Fake cryptocurrency investments are a growing concern. In 2021, according to Action Fraud, Britons lost more than £150 million to cryptocurrency fraudsters, with 18-25-year-olds the hardest hit. Like traditional money, cryptocurrencies can be used to buy goods and services, and they can be traded for profit. So, it is no surprise that the cryptocurrency is being targeted by criminals. With the equivalent of millions of pounds being stolen from cryptocurrency holdings each year, this is a very lucrative market.
Ads on social media that invite potential investors to click through to websites that look genuine (imposter scams) are a particular problem. These appear to be run by legitimate financial services companies, and they often seem to be endorsed by well-known celebrities. Offering high, guaranteed returns, these advertisements are often fake, and people lose all their money after “investing”. At KP Law, we help people affected by cryptocurrency investment fraud get their money back.
Likewise, if a UK-regulated financial advisor recommended that you invest in cryptocurrency, but they did not give you enough information about the product, the investment was unsuitable for your needs, or the advisor misled you, you may be a victim of mis-selling, and we can help you make a claim.
The FCA’s advice to consumers is clear. It says that “Crypto assets are considered very high risk, speculative purchases. If you buy crypto assets, you should be prepared to lose all your money.” Unfortunately, many investors continued with their investments in crypto assets, often on the recommendation of trusted financial advisors, and have now suffered substantial losses.
Providing a cool head in a crisis, we remove the burden from your shoulders as we fight for justice. What’s more, because we offer no-win, no-fee funding arrangements, you will benefit from expert legal support and complete peace of mind without having to worry about costs. Our solicitors have even won cases where victims had been told that there was little to no chance of compensation.
If you are the victim of a crypto investment scam or mis-selling, contact us in confidence to find out how we can help.
Have you been persuaded to invest in risky, unregulated, and unsuitable schemes involving NFTs or other forms of crypto, and promises of significant returns did not materialise? Or did you invest in a crypto scheme that turned out to be a scam? If so, we can help.
Representing individuals who have fallen victim to financial scams and mis-selling, we have managed to reclaim hundreds of thousands of pounds for our clients.
Contact us today for a free, no-obligation assessment of your case.
If this applies to you, contact KP Law to discuss a potential claim.
An NFT can be bought and sold online through an open market and is traditionally traded using cryptocurrency. NFTs have exploded in popularity over the last few years. And, as well as being used for gaming purposes and bragging rights, NFTs are also increasingly being seen as investment assets.
We would never advise for or against any particular type of investment. Instead, we recommend talking to a suitably qualified and regulated financial advisor. But, as with other types of financial ventures, we have seen what can happen when investments go wrong. As such, we would caution anyone considering buying an NFT as an investment to ensure they understand the potential risks before handing over their money.
Cryptocurrency fraud sometimes happens after a data breach. For example, the GateHub data breach and subsequent theft were only possible as GateHub’s cybersecurity was deeply flawed on multiple levels.
In addition, criminals often use the data exposed in breaches to access a person’s financial accounts (either because an individual uses the same password for multiple accounts, or because they fall victim to scams that use their stolen data against them).
If you are the victim of a cryptocurrency scam because of poor data protection processes, the KP Law Data Breach team can help you claim compensation from the organisation responsible.
Our lawyers deal with a wide range of cryptocurrency fraud & mis-selling cases every day. Here are just some examples of the type of cases we can help with…
Mis-selling can occur when an investor is misled into believing that a cryptocurrency investment is low risk. We are helping Jane make a claim for damages as she alleges that a crypto platform used misleading marketing to convince her that she was investing in a safe asset, prior to the currency’s collapse.
Donald saw an ad on social media promoting a new cryptocurrency. The ad featured a celebrity he trusted and the investment appeared to be backed by a well-known financial organisation. But the Facebook page, advert and website were all fake, and Donald lost thousands as a result. We are helping him get his money back.
Neil lost £220k in the GateHub data breach. The theft was made possible as GateHub’s cybersecurity was deeply flawed on multiple levels. Our firm helped Neil to secure a £230k settlement against GateHub.
*Names have been changed to protect client confidentiality.
Here are some of the questions our clients have asked our expert lawyers about making a crypto fraud or mis-selling claim.
Just losing money on a cryptocurrency investment isn’t enough to make a claim for damages. But if you think you might have been mis-sold, contact us for a free, no-obligation review of your case. The crypto market is largely unregulated, and without effective regulatory protections for investors, the risks of crypto investments are often misrepresented to investors. Class action litigation is expected to continue to rise as investors, shouldering heavy losses, claim they were mis-sold cryptocurrencies.
To make a professional negligence claim, you need to demonstrate that you were owed a duty of care, that the professional involved breached this duty, and that this breach caused you to suffer a loss. This can be hard to prove, as a professional is not expected to be right 100% of the time. To win your case, you must show that another experienced professional in the same field would have given different advice, or that the professional failed to follow recognised good practice.
Nevertheless, the volatility of crypto assets means that they are not suitable for most investors. If this wasn’t made clear to you, you likely have a case. We have a history of effectively handling these types of cases and can help you make a successful claim.
The best way to protect yourself from financial crime is to understand the risk. But as there are many new and evolving risks in the crypto world, it can be hard to keep up. If you want to invest in crypto, it is wise to start with beginner-friendly exchanges like Coinbase or Gemini and popular cryptos such as Bitcoin and Ethereum which have a longer track record than other altcoins.
However, this doesn’t mean that your investment will be safe. In November 2022, FTX, which was one of the world’s biggest cryptocurrency exchanges, and touted as a safe and reliable way to trade digital currency, collapsed. The aftershock of this collapse is likely to have significant consequences on the wider crypto market.
To help keep you safe, here are some of the most common types of scams. But this is not an exhaustive list:
As a result of crypto fraud or mis-selling, victims might have:
Contact us to discuss your case. Signing up is straightforward and costs you nothing as we act on a no win-no fee basis.
You will only have to pay anything if you win. You will not have to pay anything upfront. Any payment would only come out of the money that we recover on your behalf. We will conduct the claim for you under a no-win, no-fee agreement. If you win, our fees will be deducted from your damages.
Each case is different, but many of those affected could be owed many thousands of pounds.
The UK is banning cold callers from selling financial products in a bid to crackdown on scams. The blanket ban – which covers unsolicited calls offering any financial product – also extends to legitimate schemes and investments.
Reports of investment scams have risen by almost 200% in just five years according to the Financial Conduct Authority (FCA). And the good news is that a staggering £2 million was saved by investors in 2022, as they informed the FCA about a suspected scam before money was lost.
Santander has warned that cryptocurrency is being used to trick people into investing in fraudulent investment scams.
KP Law has some of the most skilled investment fraud & mis-selling lawyers in England and Wales. Here are just some of our success stories.
With innovation, resources and expertise, KP Law fights for justice for each and every client.