Fraudulent Activity in the Cryptocurrency Market: A Case Study of Alexei Ivanov vs. cfd.ft-limited.net

Tubrazy Shahid
Mar 23
3 min read

In a significant case of cryptocurrency fraud, Alexei Ivanov has taken legal action against the fraudulent broker «cfd.ft-limited.net». The case was filed on March 18, 2025, through the law firm "CyberLaw Limited Liability Partnerships" under the representation of individual entrepreneur Vetvitsky German Borisovich. This case sheds light on the growing issues of fraud in the digital trading sector and the necessary legal recourse for victims.

Case Overview

According to the complaint, Alexei Ivanov engaged in digital speculations with the broker but did not receive any replenishment or profits as per the agreed terms. Upon investigation, it was discovered that the funds, amounting to 0.18 BTC (approximately $15,499), were transferred to the cryptocurrency wallets controlled by the defendant.

As per the findings, these funds are currently being traded commercially, making any resultant profit rightfully belonging to the plaintiff. A comparative analysis of the agreements between the plaintiff and the defendant further supported claims of fraudulent activities.

Legal and Financial Proceedings

To facilitate the recovery of funds, the legal team advised Ivanov to register a U.S. non-exchange cryptocurrency wallet and initiate a "Protocol of Reversible Transactions." This protocol ensures that the funds remain securely stored until the recovery process concludes.

The details of the recovery process include:

Scammed Amount: 0.18 BTC (~$15,499)
Currency: Bitcoin
Current Status of Funds: Blocked until March 24, 2025
Money Residence: USA
Blocking Department: FinCEN (Financial Crimes Enforcement Network)
Required Procedure: Reversible transactions through a U.S. non-exchange cryptocurrency wallet
Activation Amount: 0.0029 BTC (~$250) required in the wallet as U.S. property

Ruling and Implications

Nansen PTE LTD, a Singapore-based financial firm, ruled that the actions of «cfd.ft-limited.net» were illegal since the plaintiff was not compensated as per the contractual agreement. As per U.S. law, cryptocurrency holds official property status and is considered indivisible. This ruling allows for a complete withdrawal of funds from the defendant’s accounts to be transferred back to the plaintiff.

The fraudulent broker’s funds are now blocked until March 24, 2025, pending the completion of the legal process.

The Growing Threat of Cryptocurrency Scams

This case highlights the increasing risks associated with digital trading and cryptocurrency investments. With scams becoming more sophisticated, it is crucial for investors to conduct thorough due diligence before engaging with brokers. Regulatory bodies, including FinCEN, continue to take measures to curb fraudulent activities and protect investors.

The case also underscores the importance of legal intervention in the cryptocurrency domain. The rise in digital fraud has prompted global financial institutions to take a stricter stance on enforcing regulations that safeguard investors' interests. Increased awareness and regulatory frameworks can play a crucial role in minimizing fraudulent schemes in the crypto market.

Precautionary Measures for Investors

To avoid falling victim to similar scams, investors should take the following precautions:

Verify Broker Credentials: Always conduct background research before engaging with online brokers.
Understand Investment Risks: Digital trading, especially in cryptocurrency, carries inherent risks that should be carefully evaluated.
Seek Legal Guidance: Consulting a financial or legal expert can help prevent potential fraudulent engagements.
Use Secure Wallets: Ensuring the use of reputable and secure cryptocurrency wallets can prevent unauthorized access to funds.
Report Suspicious Activity: Promptly reporting any suspected fraud to relevant authorities can aid in taking timely action.

Conclusion

The case of Alexei Ivanov vs. «cfd.ft-limited.net» serves as a strong reminder of the legal protections available to victims of financial fraud. As the investigation continues, it is expected that the implementation of stricter regulations and awareness campaigns will help mitigate the risks associated with digital investments.

For investors, it remains vital to verify the authenticity of brokers and seek legal assistance if they encounter any suspicious activity. The legal precedent set by this case could play a crucial role in shaping the future of cryptocurrency fraud investigations and asset recovery processes worldwide.

With the growing adoption of cryptocurrency, financial institutions and regulatory authorities must work together to establish stronger security measures that safeguard investors from digital fraud. This case may set a benchmark for future cryptocurrency-related litigation, emphasizing the need for proactive measures against illicit activities in the sector.

Disclaimer

The information provided in this article is for general informational purposes only and does not constitute legal or financial advice.

Author & Crypto Consultant

Shahid Jamal Tubrazy (Crypto & Fintech Law Consultant)

Shahid Jamal Tubrazy, a certified top expert in Crypto Law from Duke University, is a leading authority in the cryptocurrency and blockchain space. As a seasoned Fintech lawyer, he offers a full spectrum of services, including licensing, legal guidance for ICOs, STOs, DeFi, and DAOs, as well as specialized expertise in crypto mediation, negotiation, and mergers and acquisitions. With a proven track record and published works on Blockchain Regulation and Cryptocurrency Laws, Shahid provides unparalleled insights into the complexities of the fintech world, ensuring compliance and strategic success. 🌐💼 #CryptoLaw #Fintech #Blockchain #LicenseServices #CryptoMediator #MergersAndAcquisitions #CryptoCompliance #FrozenAssetsrecovery.