City of London Police and Gowling WLG Collaborate on Civil Asset Recovery Program

Partnership Aims to Recover Stolen Cryptocurrency Assets for Victims of Fraud

The City of London Police has launched a civil asset recovery program in partnership with law firm Gowling WLG, following a successful pilot in which assets were recovered on behalf of an elderly victim of a £2 million cryptocurrency fraud.

About the Partnership

The partnership will focus on coordinating retrieval efforts between police and other stakeholders, including victims and their legal representatives. Its recovery program will operate in cases where a criminal prosecution is not possible, providing victims of fraud – including crypto-related fraud – with the chance to claim some restitution.

Quote from Gowling Director Bríd Holden

“After a successful pilot, we are pleased to be working on this initiative with City of London Police to investigate and support victims to recoup monies lost to such frauds,” said Gowling Director Bríd Holden in a press release.

Background on Crypto Scams

Crypto scams cost $9.9 billion globally in 2024 alone, according to Chainalysis. Holden also said that Gowling hopes its collaboration with City of London Police will “change the landscape and encourage more victims to report fraud, raising awareness generally.”

Police Perspective

London Police are also aiming for a similar result, with Detective Chief Inspector Craig Mullish reporting that, in the case of fraud, “it’s the money or assets that are lost that can have a lasting effect on victims.”

Research and Asset Recovery

The police force’s research shows that even civil asset recovery can help authorities in combating organized crime groups and protecting the UK against fraud and other crime. Instances of asset recovery have become more common in recent months, with UK police working in conjunction with law firms able to recover over £520,000 (about $670,000) in crypto that had been defrauded from an 80-year-old man.

Case Study: Wealth Recovery Solicitors

In September, a case was filed in the UK against Wealth Recovery Solicitors, which a victim of a £635,000 crypto fraud (about $818,000) accused of negligence after it failed to recover stolen funds. The firm allegedly lacked the expertise to trace the defrauded crypto and manage the litigation needed to retrieve it, with the firm applying for a global freezing order against Blockchain.com.

Quote from Ashley Fairbrother

“It is only through this type of initiative and collaborative efforts that we can hope to tackle the increasing scale of fraud,” said Ashley Fairbrother of Edmonds Marshall McMahon, which participated in the recent retrieval of £520,000 in crypto. “And it is precisely these arrangements that we now need to focus on and create between every police force, and specialist private sector law firms, to tackle the complex and rapidly evolving cryptocurrency frauds this country is facing.”

Conclusion

The collaboration between City of London Police and Gowling WLG marks an important step in addressing the growing problem of crypto-related fraud. By working together, law enforcement and private sector firms can increase the chances of recovering stolen assets and bringing justice to victims of fraud.

FAQs

Q: What is the purpose of the civil asset recovery program?

A: The program aims to recover stolen cryptocurrency assets for victims of fraud, providing them with the chance to claim some restitution.

Q: Who is behind the partnership?

A: The partnership is between City of London Police and law firm Gowling WLG.

Q: What is the scope of the program?

A: The program will operate in cases where a criminal prosecution is not possible, focusing on coordinating retrieval efforts between police and other stakeholders, including victims and their legal representatives.

Q: How successful has the program been so far?

A: The program has had a successful pilot, recovering assets on behalf of an elderly victim of a £2 million cryptocurrency fraud.

Q: What is the potential impact of the program?

A: The program has the potential to increase the chances of recovering stolen assets and bringing justice to victims of fraud, helping to combat organized crime groups and protect the UK against fraud and other crime.