Unmasking Crypto Fraudsters: The Expanding Power of the Disclosure Order

Tubrazy Shahid
Apr 14
3 min read

In the decentralized and borderless world of cryptocurrency, anonymity is a double-edged sword. While it fuels innovation and privacy, it also creates a fertile ground for bad actors to hide behind pseudonymous wallet addresses and digital avatars. For victims of crypto fraud, identifying who is behind a wallet is often the key to justice - and that’s where the Disclosure Order becomes indispensable.

What Is a Disclosure Order?

A Disclosure Order, most commonly sought under the legal framework of a Norwich Pharmacal Order, is a judicial directive compelling third parties—such as cryptocurrency exchanges, custodians, and even blockchain analytics firms—to disclose information about individuals suspected of wrongdoing.

Originally developed in traditional financial litigation, disclosure orders have now become cornerstones in digital asset recovery, closing the critical gap between on-chain anonymity and real-world accountability.

How Disclosure Orders Work in Crypto Cases

When funds are stolen or misappropriated, blockchain forensic investigators can trace the movement of assets through various wallets. However, these addresses rarely link to names, unless associated with a regulated exchange or centralized platform that holds KYC data or technical records.

A Disclosure Order can compel those platforms to reveal:

The identity behind a wallet or exchange account
KYC documents and verification data submitted by the user
Transaction history and asset flows linked to illicit activity
IP addresses, device fingerprints, login timestamps, and browser metadata

This is often the missing link between a forensic report and a viable legal case.

Legal Recognition Across Jurisdictions

Several courts in forward-thinking jurisdictions have recognized the legitimacy and necessity of disclosure orders in crypto litigation. Notably:

UK courts have been pioneers, issuing disclosure orders and injunctions even against “persons unknown” when the wallet owner’s identity is not yet confirmed.
Singapore’s judiciary has similarly acknowledged crypto assets as property, enabling legal remedies that include both disclosure and freezing orders.
Canadian and offshore jurisdictions such as the BVI and Cayman Islands are increasingly willing to enforce these orders, especially in cross-border fraud matters.

These developments reflect the growing recognition of digital assets as enforceable property rights—and the legal system’s evolving capacity to keep up with digital crime.

Strategic Use in Litigation and Recovery

Disclosure Orders are not just investigatory tools—they're a strategic gateway to broader remedies:

They support the issuance of Mareva injunctions (freezing orders) by establishing the link between a wallet and its owner.
They provide a basis for civil recovery actions, including claims for breach of trust, fraud, and unjust enrichment.
They enable victims and regulators to expose organized fraud networks, shell companies, and coordinated scams.
They can even help determine whether exchanges themselves acted negligently or facilitated illicit activity.

In urgent matters, courts can issue these orders ex parte (without notifying the respondent), minimizing the risk that fraudsters will move or launder the assets before action can be taken.

Not Just for Victims: A Tool for Exchanges and Law Enforcement

While primarily used by victims and their legal counsel, disclosure orders also benefit exchanges by:

Helping them comply with AML/CFT regulations
Minimizing reputational risk by proactively supporting lawful investigations
Creating a legal framework that protects user data while enabling justice

When issued in tandem with data privacy protections, these orders strike a balance between confidentiality and transparency in a decentralized economy.

Conclusion: A New Era of Accountability in Crypto

As courts increasingly embrace the idea that "code is not law" but subject to it, tools like the Disclosure Order are bringing visibility to the opaque corners of the crypto world.

They empower victims, enhance cross-border cooperation, and strengthen the rule of law in the digital age. For anyone who has fallen prey to a scam, a disclosure order might be the first—and most crucial—step toward reclaiming stolen assets and restoring justice.

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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.