With the crypto market gaining widespread exposure worldwide, U.K.’s legal system is expecting a surge ahead in crypto scams taking place in the country. Speaking to the publication, Max Hill QC, director of public prosecutions at the Crown Prosecution Service (CPS), said that he expects a surge in the number of cases involving digital currencies. “Cases coming in are in low numbers now, but my prediction is they will increase,” he said.
Crypto scams continue to rise.
With the unprecedented rally in the crypto market over the last years, the number of scams emerging is also exponentially high. As per Action Fraud data, the total scams related to cryptocurrencies in the previous year of 2020 were up 57% to 5,581. The numbers have further extrapolated to this year as well. January 2021 reported double the crypto scams in comparison to last year. There have been over 350 incidents of crypto price manipulation across multiple exchanges in just the last seven months. Around £267m have been linked to “pump and dump” scams.
Financial Conduct Authority warns investors of crypto fraud.
Earlier, the top regulatory body in the U.K. – Financial Conduct Authority (FCA) – warned investors about a new scamming syndicate targeting investors through a “clone” outfit of a legitimate crypto firm regulated by FCA. According to the FCA’s blog post, a company under the fake name “Blockchain Recovery Association” is approaching customers under the pretext of the real and legitimate company Gain Capital U.K. Limited. The FCA noted, “Fraudsters are using the details of firms we authorize to try to convince people that they work for a genuine, authorized firm. Almost all firms and individuals carrying out financial services activities in the U.K. have to be authorized or registered by us.”