Scammers can misappropriate your cryptocurrency in a variety of ways. For example, introduce yourself as brokers or create a fake crypto exchange website. Experts told what to do in such cases
Cryptocurrency holders often lose it for various reasons. One of them is scammers. They have come up with many ways to steal digital assets and use them mainly against inexperienced users. The lawyers told what actions should be taken in case of loss of funds.
When scammers appropriated funds
In early October, a 63-year-old resident of Voronezh told law enforcement agencies that she had lost about 1.1 million rubles. when trying to invest in cryptocurrency. The woman found an advertisement on the Internet where it was offered to profitably invest in digital assets and followed the link. After that, a person contacted the pensioner, introduced himself as a trader and convinced her to install an application on her phone for remote control of the device.
Then the "trader" suggested that the pensioner register on a crypto exchange and top up her balance. The woman agreed and transferred the funds to an account on the trading platform. As a result, the money disappeared, and the unknown person stopped communicating. Law enforcement agencies opened a criminal case under the article "Fraud".
Moscow Digital School expert Efim Kazantsev believes that you can try to return the funds. In this situation, a person was illegally lured out of money by deception or abuse of trust, and it does not matter whether we are talking about cryptocurrency or not, the lawyer emphasized. He explained that in the same way funds are extorted under the pretext of investing in non-existent real estate, business, securities and so on.
Kazantsev in this case proposed the following algorithm of actions:
1. Determine who exactly received the money and try to get it back. To do this, you need to contact the police with a statement about the fraud committed against the victim. This will help identify the recipient of the money.
2. If necessary, apply to the court with a claim for the return of unjust enrichment and an application for securing the claim.
Another point of view is the head of the Russian Center for Competence and Analysis of OECD Standards, RANEPA under the President of the Russian Federation, Antonina Levashenko. According to her, if a user transferred funds to a broker, and he appropriated them for himself, it is important whether this broker is an official person registered by a government body. Otherwise, it will be almost impossible to get the money back.
If it seems to you that fraudsters have appropriated your funds, it is important to take as many screenshots as possible confirming this fact. It is necessary to document the correspondence, numbers from which unknown persons contacted and other information. This data can help law enforcement agencies to identify the criminals, and if the case comes to court, they will act as evidence.
When the funds were appropriated by the exchanger
You can lose funds when withdrawing cryptocurrency and selling it for fiat money. Exchangers are very popular for these purposes. They accept digital assets, and in return they pay rubles and other currencies, for example, by transferring to bank cards.
There are many exchangers, and among them there may be those created by scammers. Those supposedly create services for cashing out cryptocurrency, but in fact, when receiving funds, they keep them for themselves.
If you lose a cryptocurrency during withdrawal or purchase through an exchanger, it is important whether the service is an officially registered person who carries out activities with the permission of a government agency, Levashenko explained. If so, the victim can file a complaint with this government agency.
“For example, in the case of CFA exchange operators, a person can apply to the Central Bank with evidence of the operation. However, this will only help when purchasing a digital financial asset, while digital currency (cryptocurrency) exchangers are currently not regulated in Russia within the framework of the CFA, and in this case it will not be possible to complain, ”Levashenko warned.
Alexander Zhuravlev, Managing Partner of the EBR Law Firm, is confident that it is possible to demand a refund of funds appropriated by the exchanger. In this case, there are two ways. The first is suitable for a situation if the service is a legal entity or an individual whose identity is known. Then you can go to court with a civil claim and demand the freezing of the assets of the exchanger until the end of the proceedings.
The second way is to contact the law enforcement agencies, Zhuravlev specified. This option is applicable in cases where it is impossible to identify the recipient of funds.
The lawyer noted that the return of the cryptocurrency assigned by the exchanger is a complex process. The bailiff or law enforcement agencies will need to find out where digital assets are stored and gain access to them, and there is practically no such practice in Russia.
Therefore, Zhuravlev recommended not demanding the return of the cryptocurrency, but compensation for losses associated with the appropriation of funds by the exchanger. In this case, the amount of damage will be calculated at the rate of digital assets.
If the exchanger has misappropriated your funds, it is important to record as much information as possible - create a screenshot of the exchanger's website, save the correspondence with technical support, document the fact of transactions as detailed as possible. It is important to do this immediately after the suspicion of theft of money appears, since after that the exchanger's website may stop working. The information may be needed by law enforcement agencies and come in handy in court.
When funds were stolen from the exchange
Cryptocurrency can be lost even if you just keep it on the exchange. Attackers can hack the marketplace. In this case, the likelihood of a refund is low. However, there is a chance that the company will contact other exchanges and with their help will be able to first isolate the stolen coins and then return them to their owners.
It is possible to lose funds stored on the exchange not only as a result of its hacking. Fraudsters can enter your account, for example, by receiving your data after you visit a phishing site. This is the name of fake sites through which fraudsters steal user information. The trader visits a web page that appears to be completely copied from the exchange web page and tries to log into his account. The entered username and password get to the attackers, they use this information to enter the user account on the real exchange.
Levashenko said that the theft of cryptocurrency from a wallet or from an exchange can be qualified under Article 158 of the Criminal Code of the Russian Federation "Theft". In the case of phishing or promises of a rapid increase in investment in order to gain access to the wallet, Article 159 of the Criminal Code of the Russian Federation “Fraud” may be applied.
However, according to the new law "On CFA", which will enter into force in 2021, in order for cryptocurrency (digital currency) to receive legal protection, it is necessary to go through the declaration procedure, the rules of which have not yet been established, Levashenko said. In addition, crypto exchanges and crypto wallets are not regulated in Russia. This can create barriers to going to a government regulator or court.
Roman Yankovsky, member of the Commission on Legal Support of the Digital Economy of the Moscow Branch of the Russian Lawyers Association, believes that in this and the other cases listed above, the return of the stolen cryptocurrency is unlikely or even impossible. The situation may change after the entry into force of the law "On CFA". However, the new rules will only apply to crimes that occurred after the entry into force of the law.
“Even the criminal proceedings do not guarantee that the cryptocurrency will be included in the subject of the charge (see the case of Pyotr Piron and Yevgeny Prigozhin). Probably, after the entry into force of the law "On CFA" the situation may change, but, as we know, the criminal law does not have retroactive effect, and victims of previously committed crimes may face problems in qualifications, "Yankovsky said.
In any case, the refund process, even a successful one, can take a very long time. To avoid the hassle and possible loss of capital, when working with digital money, you should be very attentive to every little detail. At a minimum, follow the simplest rules.
Author: Dmitry Fomin.
(c) https://www.rbc.ru/crypto/news/5f9851099a7947632705a7c1
Cryptocurrency holders often lose it for various reasons. One of them is scammers. They have come up with many ways to steal digital assets and use them mainly against inexperienced users. The lawyers told what actions should be taken in case of loss of funds.
When scammers appropriated funds
In early October, a 63-year-old resident of Voronezh told law enforcement agencies that she had lost about 1.1 million rubles. when trying to invest in cryptocurrency. The woman found an advertisement on the Internet where it was offered to profitably invest in digital assets and followed the link. After that, a person contacted the pensioner, introduced himself as a trader and convinced her to install an application on her phone for remote control of the device.
Then the "trader" suggested that the pensioner register on a crypto exchange and top up her balance. The woman agreed and transferred the funds to an account on the trading platform. As a result, the money disappeared, and the unknown person stopped communicating. Law enforcement agencies opened a criminal case under the article "Fraud".
Moscow Digital School expert Efim Kazantsev believes that you can try to return the funds. In this situation, a person was illegally lured out of money by deception or abuse of trust, and it does not matter whether we are talking about cryptocurrency or not, the lawyer emphasized. He explained that in the same way funds are extorted under the pretext of investing in non-existent real estate, business, securities and so on.
Kazantsev in this case proposed the following algorithm of actions:
1. Determine who exactly received the money and try to get it back. To do this, you need to contact the police with a statement about the fraud committed against the victim. This will help identify the recipient of the money.
2. If necessary, apply to the court with a claim for the return of unjust enrichment and an application for securing the claim.
Another point of view is the head of the Russian Center for Competence and Analysis of OECD Standards, RANEPA under the President of the Russian Federation, Antonina Levashenko. According to her, if a user transferred funds to a broker, and he appropriated them for himself, it is important whether this broker is an official person registered by a government body. Otherwise, it will be almost impossible to get the money back.
If it seems to you that fraudsters have appropriated your funds, it is important to take as many screenshots as possible confirming this fact. It is necessary to document the correspondence, numbers from which unknown persons contacted and other information. This data can help law enforcement agencies to identify the criminals, and if the case comes to court, they will act as evidence.
When the funds were appropriated by the exchanger
You can lose funds when withdrawing cryptocurrency and selling it for fiat money. Exchangers are very popular for these purposes. They accept digital assets, and in return they pay rubles and other currencies, for example, by transferring to bank cards.
There are many exchangers, and among them there may be those created by scammers. Those supposedly create services for cashing out cryptocurrency, but in fact, when receiving funds, they keep them for themselves.
If you lose a cryptocurrency during withdrawal or purchase through an exchanger, it is important whether the service is an officially registered person who carries out activities with the permission of a government agency, Levashenko explained. If so, the victim can file a complaint with this government agency.
“For example, in the case of CFA exchange operators, a person can apply to the Central Bank with evidence of the operation. However, this will only help when purchasing a digital financial asset, while digital currency (cryptocurrency) exchangers are currently not regulated in Russia within the framework of the CFA, and in this case it will not be possible to complain, ”Levashenko warned.
Alexander Zhuravlev, Managing Partner of the EBR Law Firm, is confident that it is possible to demand a refund of funds appropriated by the exchanger. In this case, there are two ways. The first is suitable for a situation if the service is a legal entity or an individual whose identity is known. Then you can go to court with a civil claim and demand the freezing of the assets of the exchanger until the end of the proceedings.
The second way is to contact the law enforcement agencies, Zhuravlev specified. This option is applicable in cases where it is impossible to identify the recipient of funds.
The lawyer noted that the return of the cryptocurrency assigned by the exchanger is a complex process. The bailiff or law enforcement agencies will need to find out where digital assets are stored and gain access to them, and there is practically no such practice in Russia.
Therefore, Zhuravlev recommended not demanding the return of the cryptocurrency, but compensation for losses associated with the appropriation of funds by the exchanger. In this case, the amount of damage will be calculated at the rate of digital assets.
If the exchanger has misappropriated your funds, it is important to record as much information as possible - create a screenshot of the exchanger's website, save the correspondence with technical support, document the fact of transactions as detailed as possible. It is important to do this immediately after the suspicion of theft of money appears, since after that the exchanger's website may stop working. The information may be needed by law enforcement agencies and come in handy in court.
When funds were stolen from the exchange
Cryptocurrency can be lost even if you just keep it on the exchange. Attackers can hack the marketplace. In this case, the likelihood of a refund is low. However, there is a chance that the company will contact other exchanges and with their help will be able to first isolate the stolen coins and then return them to their owners.
It is possible to lose funds stored on the exchange not only as a result of its hacking. Fraudsters can enter your account, for example, by receiving your data after you visit a phishing site. This is the name of fake sites through which fraudsters steal user information. The trader visits a web page that appears to be completely copied from the exchange web page and tries to log into his account. The entered username and password get to the attackers, they use this information to enter the user account on the real exchange.
Levashenko said that the theft of cryptocurrency from a wallet or from an exchange can be qualified under Article 158 of the Criminal Code of the Russian Federation "Theft". In the case of phishing or promises of a rapid increase in investment in order to gain access to the wallet, Article 159 of the Criminal Code of the Russian Federation “Fraud” may be applied.
However, according to the new law "On CFA", which will enter into force in 2021, in order for cryptocurrency (digital currency) to receive legal protection, it is necessary to go through the declaration procedure, the rules of which have not yet been established, Levashenko said. In addition, crypto exchanges and crypto wallets are not regulated in Russia. This can create barriers to going to a government regulator or court.
Roman Yankovsky, member of the Commission on Legal Support of the Digital Economy of the Moscow Branch of the Russian Lawyers Association, believes that in this and the other cases listed above, the return of the stolen cryptocurrency is unlikely or even impossible. The situation may change after the entry into force of the law "On CFA". However, the new rules will only apply to crimes that occurred after the entry into force of the law.
“Even the criminal proceedings do not guarantee that the cryptocurrency will be included in the subject of the charge (see the case of Pyotr Piron and Yevgeny Prigozhin). Probably, after the entry into force of the law "On CFA" the situation may change, but, as we know, the criminal law does not have retroactive effect, and victims of previously committed crimes may face problems in qualifications, "Yankovsky said.
In any case, the refund process, even a successful one, can take a very long time. To avoid the hassle and possible loss of capital, when working with digital money, you should be very attentive to every little detail. At a minimum, follow the simplest rules.
Author: Dmitry Fomin.
(c) https://www.rbc.ru/crypto/news/5f9851099a7947632705a7c1
