Recovering Crypto Losses Is Very Challenging, But Not Impossible
Bloomberg Law (subscription required) published an article authored by Olshan white collar litigation partner Robert Appleton entitled “Recovering Crypto Losses Is Very Challenging, But Not Impossible.” In an article, Robert discusses the ramifications of falling for a cryptocurrency scam and addresses some recovery methods. He details how sophisticated schemes emanating from foreign-based operatives develop fictitious trading platforms that appear genuine but are not. These scams have impacted various individuals, from casual investors to stock market regulars. “The platforms look so authentic that the average user can’t distinguish a scam crypto site from a legitimate one,” Robert writes. “It is widely believed that once a victim’s cryptocurrency is transferred from their wallet, typically held on a centralized exchange, to a decentralized exchange or private wallet, the coins are lost forever.” Robert goes on to explain how victims feel hopeless after a crypto scam: “[D]ecentralized wallets and private platforms are even out of reach of US law enforcement in more instances.” However, he stresses that “the key is to respond early,” in order to recover the stolen tokens. And that recovery can be possible in some cases through civil processes and other efforts. Additionally, Robert highlights how the movement of coins through the blockchain can be tracked, keeping the adage, “You can run, but you cannot hide,” alive and well in the crypto ecosystem.
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