The popularity of cryptocurrencies continues to grow, both for investors and individuals and organizations. Cryptoassets can be used to store funds and settlements, including cross-border ones. Therefore, they are attracting more and more attention from both users themselves and attackers who want to steal other people's funds.
In this post, we will analyze the remedies that can help find and recover cryptoassets when they have been misappropriated through hacking, fraud, or other criminal activities. This topic will be especially relevant for those who do not know how to protect their crypto assets from theft or hacking in England.
How to secure cryptoassets from theft in the UK
Many people believe that the blockchain guarantees protection for the next generation of currencies and that using crypto assets is even safer than regular money. On the one hand, this is true. But at the same time, the volume of theft in this area has reached such significant indicators that they simply cannot be ignored.
Like any other asset, cryptoassets can be stolen. An example is the recent attack on the Ethereum Classic crypto exchange, which took place in 2020. During the attack, the attacker moved more than 800,000 ETC from the crypto exchange to multiple wallets through private transactions. The network was disabled and this allowed the criminal to overwrite transactions.
If you have been the victim of a crypto asset scammer, and even if it hasn't happened yet, it is important to build your knowledge base regarding the available civil protection for digital assets from being hacked or stolen in the UK. Such remedies are often more effective than filing a complaint with law enforcement.
How to get stolen cryptocurrency back through a UK court
Civil courts have a wide range of remedies at their disposal to recover stolen assets. These include:
- Regulations on information disclosure to help identify the perpetrators of crypto crimes.
- Court orders for freezing digital assets.
NOTE: Cryptoassets can be classified as a type of property in Great Britain. When registering a crypto-company in the UK, this feature should be taken into account.
Good news: getting your digital money back after it has been stolen is quite possible! Normally, this is achieved by finding the IP address from which the registration on the exchange and then illegal actions with the virtual currency were carried out.
To get your virtual money back, you need to petition the High Court to issue an arrest warrant and confiscation of cryptocurrency in the UK to suspend the misconduct. At the same time, a ban may be imposed on the use of crypto assets so that the exchange can preserve these assets.
Tip: To avoid becoming a victim of cybercriminals, do not share sensitive information. If at the conference the host asks those who have cryptocurrency to raise their hands, you should not do this. Identifying potential victims is the first step in which you can help the attacker.
The involvement of law enforcement agencies in the investigation of cases of stealing cryptoassets or hacking a crypto exchange are not the only steps that a victim can take. The civil remedies that can be applied can often be more effective in tracking and locating cryptoassets. While asset recovery is by no means an easy task, with experienced lawyers and investigators, stolen virtual currencies can be recovered.
If you plan to provide services related to cryptocurrency in the country, a consultation on the regulation of cryptocurrency activities in the UK might be at handy. Reach out to our specialists by filling out a quick contact form below.