When Prosecution Fails, Law Firms Step In: UK Police Join Forces with Legal Experts to Recover Stolen Crypto

Tubrazy Shahid
2 days ago
4 min read

As cryptocurrency fraud continues to surge globally, victims are often left with no clear path to recover their lost assets. But a new initiative in the UK is changing that narrative.

The City of London Police has launched a civil asset recovery program in partnership with a specialized legal firm, enabling victims of crypto-related fraud to pursue financial restitution — even in cases where criminal prosecution isn’t possible.

This innovative approach follows a successful pilot case in which an elderly victim of a £2 million crypto scam was able to recover a portion of their stolen assets through civil recovery mechanisms. The success has sparked hope for many others navigating the difficult aftermath of digital fraud.

👩‍⚖️ Legal Expertise Now Crucial in Crypto Recovery

Police forces have historically lacked the tools and expertise needed to trace stolen crypto assets, which are often laundered through multiple wallets and international platforms. But now, crypto-literate legal teams are stepping in to fill the gap.

These firms assist law enforcement in:

Tracing blockchain transactions using advanced forensic tools
Securing court orders to freeze stolen crypto
Advising victims on civil claims to recover funds
Coordinating internationally to retrieve assets held across borders

A representative from the participating law firm stated that they hope this joint recovery effort will “change the landscape” by encouraging more victims to report fraud, while also raising public awareness about the available legal remedies.

🔄 Civil Recovery: A Legal Route When Criminal Cases Stall

This civil asset recovery program offers a vital alternative to criminal proceedings, which are often delayed by jurisdictional limits or lack of evidence.

As Detective Chief Inspector Craig Mullish of the City of London Police noted, “it’s the money or assets that are lost that can have a lasting effect on victims.” Even partial asset recovery can provide psychological relief and financial restoration.

Rather than waiting indefinitely for prosecutions, victims can now use specialist legal support to file civil claims, initiate asset tracing, and work in sync with law enforcement agencies for more immediate results.

📈 Real-World Success: Asset Recovery Is Becoming Possible

In just the past week, UK authorities, supported by legal specialists, recovered over £520,000 (~$670,000) in cryptocurrency stolen from an 80-year-old man. This operation leveraged recent amendments to the Proceeds of Crime Act 2002, giving law enforcement the legal authority to freeze digital assets even before a conviction.

This marks a turning point in how crypto fraud is addressed — shifting from reactive prosecution to proactive asset seizure.

❌ Not All Legal Help is Equal: A Cautionary Tale

But victims must exercise caution when choosing legal assistance. In a recent high-profile case, a victim of a £635,000 crypto fraud hired a law firm that lacked the necessary expertise and ultimately failed to recover any funds. The firm mistakenly filed a global freezing order against Blockchain.com — simply because the stolen wallet address was visible on its platform — a critical misstep showing their inexperience with blockchain law.

The matter is now being handled by a different legal team with demonstrated experience in crypto litigation and asset tracing.

🧠 Guidance for Victims: Don’t Trust Just Any Recovery Offer

Social media is rife with scams promising quick crypto recovery — but real recovery requires legal expertise, forensic skills, and lawful collaboration with enforcement bodies.

Victims should look for:

Legal teams with verified crypto asset tracing experience
Knowledge of blockchain protocols and forensic tools
The ability to work with law enforcement and cross-border agencies
A realistic legal strategy — not guaranteed promises or upfront fees via DMs

🛡️ A New Path Forward in the Fight Against Crypto Fraud

Global crypto scams led to an estimated $9.9 billion in losses in 2024 alone. But recent developments in the UK show that recovery is possible — if victims turn to the right professionals and avoid fake recovery agents online.

The UK's approach — partnering police with crypto-literate legal experts — offers a powerful blueprint for other nations to follow. Through this model, victims are no longer left to navigate the fraud aftermath alone. They gain a real chance to recover assets, dismantle criminal networks, and rebuild trust in the legal system.

If you’ve been a victim of crypto fraud, don’t rely on promises from anonymous accounts or hackers.

Seek guidance from a qualified crypto lawyer who understands the legal and technical terrain of asset recovery.

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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.