London law firms form global ‘crypto fraud network’ CFAAR
In response to the rise in crypto fraud, eight London law firms are joining forces.
The Crypto Fraud and Asset Recovery (CFAAR) network was announced today.
It aims to become a global figure in digital finance disputes and resolutions. The network was founded by eight London law firms, including:
- audit and tax firm Grant Thornton,
- asset recovery firm Asset Reality,
- and corporate fraud firm Rahman Ravelli.
The idea is to pool resources in order to tackle the growing cases in crypto fraud.
CFAAR is also looking for new members working in the space. It hopes to host meetings, events, and networking sessions to develop best practices and ideas.
Speaking independently, former Justice of the UK Supreme Court Lawrence Collins told reporters London had always been a financial epicenter — but now the capital was at risk of becoming “a center of international financial crime.”
“Where there is innovation, criminals are not far behind,” he stated. “The latest example is crypto fraud.”
Crypto fraud on the rise
The UK’s Financial Conduct Authority (FCA) conducted a recent report revealing 2.3 million Brits now own cryptocurrency.
The study also highlighted general understanding of crypto is in decline.
According to Action Fraud, the UK’s fraud reporting service:
- crypto scams rose 57% in 2020,
- crypto fraud losses rose to £113 million ($157 million),
- that’s up from £76.6 million ($106 million) in 2019.
The UK’s finance watchdogs have also cracked down on crypto fraud where possible.
Its Advertising Standards Authority (ASA) called crypto marketing a “red alert priority” last month. In a bid to tackle “misleading” and “irresponsible” ads, it plans to adopt a proactive approach using web-scraping and AI tools.
[Read more: Crypto exchange’s ‘irresponsible’ Bitcoin ad targeted retirees, says watchdog]
And in June, the FCA outed 111 crypto businesses operating without proper registration. It likened crypto consumerism to “tulip mania.”
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