Cryptocurrency Seizure — Assets Blocked on Exchange After Fake Trading Fraud

Our client was a victim of a fake online trading scam in which his savings were diverted into cryptocurrency wallets controlled by fraudsters. We traced the assets to a regulated exchange and obtained a judicial seizure order, blocking the stolen funds before they could be withdrawn.

Fake trading fraud

The pattern our client experienced is one we see regularly: initial contact through social media, a polished trading platform, small profitable withdrawals to build trust, then a large final deposit followed by complete withdrawal restrictions. In this case, the stolen funds were converted to cryptocurrency and sent to a series of wallets before eventually reaching a balance at a registered exchange.

Blockchain forensics and judicial seizure

We engaged blockchain forensic specialists to trace the asset trail. The analysis identified the fraudsters' wallet addresses and, crucially, showed that a significant portion of the stolen assets remained at a regulated exchange where KYC (Know Your Customer) procedures had been applied to the recipient accounts. We presented the judicial authority with this evidence and obtained a precautionary seizure order directed at the exchange.

When stolen cryptocurrency reaches a regulated exchange, recovery becomes possible. The exchange has identity records, compliance obligations, and is subject to judicial cooperation. That is where we focus our intervention.

Outcome

The stolen cryptocurrency was seized at the exchange. The assets are now frozen pending the criminal proceedings, and restitution to our client is the next step in the process. The fraudsters have been identified through the exchange's KYC records.