CFAAR, Consortium of London Law Firms, to Fight Crypto Fraud
A consortium of legal firms in London has formed the ‘Crypto Fraud and Asset Recovery Network’ (CFAAR). The consortium aims to settle issues in the UK crypto sector, particularly in light of the increasing fraudulent activities. CFAAR aspires to be a “recognized body and ‘go-to’ point” for assistance on cryptocurrency fraud scrutiny and asset reclamation.
CFAAR, as per the statement made today, was created to establish the United Kingdom as a worldwide hub for crypto-linked conflict resolution. The rationale for this is an increase in the quantity and sophistication of cryptocurrency-related scams. Digital asset fraud, malware attacks, and initial coin offerings (ICOs) are among the offenses on the list. The number of those who have become prey to fraud has also increased.
“London has traditionally been a premier financial and professional hub, but it may also be evolving into a magnet for global financial wrongdoing,” said former UK Supreme Court Justice Lawrence Collins. He went on to say, “Where there is invention, crooks are not far off.”
The most notable example is crypto forgery.” Collins mentioned that criminal oversight would not sufficiently redress “victims of fraudsters who offer astounding yields through fake products, or who develop dubious cryptocurrencies and fake cryptocurrency exchanges, and then conceal the stolen funds via cumbersome webs.” The CFAAR network’s eight founding member law firms aim to make it an industrial level representation on crypto-linked scams.
Grant Thornton, Asset Reality, Essex Court Chambers, Osborne Clarke, Rahman Ravelli, RPC, Stewarts, and Twenty Essex are among them. The lawyers will be at the helm of the English court system’s main stage for virtual currency issues.
Importantly, the legal firm consortium is well-known for leading crypto fraud related probes, advocating, and analytics. They also have notoriety for asset tracking and reclamation. They look forward to having more experts with the same goal in the future.
They may therefore exchange various plans, expertise, and methodologies on a worldwide scale. Hacks and dangers in the crypto sector were 160% greater in 2019 than in 2020, as per Statista. This indicates that the crypto ecosystem has developed and turned out to be more capable of identifying threats during that time period.
The lack of the PlusToken program was also blamed for the decrease. Nonetheless, the $1.4 billion theft and embezzlement value was almost twice that of 2018. This year’s ransom totaled roughly $250,000 as of July 17. Governments all around the globe are enforcing stricter crypto trading rules in response to concerns about money laundering and tax fraud.
The US Securities and Exchange Commission (SEC), for example, has been considering crypto governance for some time. The agency’s chairman has even vowed to control the cryptocurrency environment, which he has compared to the “Wild West.”