How can I recover stolen crypto assets?

I worked my way from rags to riches, founding a sustainable clothing e-commerce business during the pandemic. As a cryptocurrency enthusiast, I have been looking at ways to increase my digital asset savings through various investment schemes. However, I am aware that investment fraud has tripled. How do I protect myself? If I were a victim of such criminal activity, how can I recover stolen assets and what are the added complexities of tracking stolen cryptocurrency compared to fiat currency?

Stephen Ross, partner at law firm Withers, says you need to approach this with detailed due diligence and a healthy dose of skepticism. Start with Finanstilsynet’s own warning list, which shows which companies operate without their permission or run known scams. But don’t assume that if a company isn’t mentioned, all is well.

If you are looking at regulated investments with underlying crypto assets then inspect the FCA’s register. That said, fraudsters are highly sophisticated and often use “clone” companies that exploit the details and websites of genuine companies to deceive investors and divert their business.

Try checking details independently at Companies House, where you can search for company names and directors for free and use the contact details provided on the FCA register to ensure you’re dealing with the real entity and not a clone.

It goes without saying that unsolicited inquiries, online and social media promises of high returns and any pressure to act quickly are red flags.

If you have invested in a regulated scheme and discover that you have been defrauded, you may have access to the Financial Ombudsman Service or the Norwegian Financial Supervisory Authority’s compensation scheme, but there are limitations on the compensation you can receive. If you invested in an unregulated scheme, you are far less likely to get your money back.

It is possible to track cryptocurrency, despite an overriding perception of secrecy and anonymity. Using bitcoin as an example, all transactions are ultimately public and recorded on the blockchain, so with appropriate software it is possible for analysts to track transactions or discern patterns related to the movement of bitcoin between addresses.

Armed with this information and assuming there is a link to England and Wales, lawyers can help you try to recover crypto-assets or converted money or assets using the power of the English court to issue worldwide freezing orders (even where the perpetrators are unknown ) and seeks disclosure from innocent third parties such as exchanges and banks. These are powerful legal tools, but they don’t come cheap or with any guarantee of ultimate success.

It is unlikely that you will be able to start such an exercise without investing at least £50,000 (if not more) and any lawyer who tells you otherwise is not your friend. You should also be warned that you may have to track your assets around the world for additional costs.

You should also inform the police or Action Fraud, but historically this has meant little or no action.

If you were defrauded, your time and effort can be better spent making sure other assets are safe. The scammers may target you again or sell your details to others. Be wary of people who contact you claiming to be acting for others who have been scammed in a similar way. This could be a “recovery scam” that preys on your desperation and panic at being scammed and another way to get money from you.

Is “nesting” a good option during a divorce?

My husband and I are getting divorced. We have two young children in primary school and jointly own the family home. There is a lot to sort out financially and practically, and we want to disrupt the children’s lives as little as possible. We’ve heard that some couples “nest” while separating, with one parent moving out for a few days while the other stays in the home, before switching a few days later. Would this be the right option for us? What do we need to consider to make it work?

Dal Heran, head of family law at Wright Hassall, say many divorced couples with children are considering breeding. Like you, they want to keep things as consistent as possible for their children. In fact, I talk about the practical side of divorce with clients almost as much as the legal elements.

The truth is that there is no set-in-stone method for a nesting arrangement, and it must be tailored to your personal needs. But there are various things you should discuss with your partner before going this route.

The most important thing to think about is boundaries. Parents often do not want to use the same room as the other parent, so sleeping arrangements must be considered. If you have a spare room, great; but if not, consider whether you’re both comfortable sleeping in the same room the other parent used when it’s your turn to live in the house.

It is the key to planning where you will live when you are not at home with your family. Some parents even decide to rent their own second home instead of staying in a hotel or with friends, to try to have some “normalcy”. But this needs to be thought through carefully, since if you rent a second home to share when you switch, it’s a different living arrangement with the person you’re separating from.

You should discuss how you will share the bills for the family home and if you decide to rent another property, agree how this will be paid. It is also important to understand how you will divide the days in the family home: you may want these days to revolve around work patterns, or so that each of you gets a weekend with the children.

I also advise couples to consider what happens during school holidays or if their children are ill and need time off from school. Planning for these situations and having a clear plan will help eliminate difficulties if you decide to go down the breeding route.

Finally, you should think about how long you ideally want to do this. Is it a short-term or long-term arrangement? Many divorced parents eventually meet a new partner, so if this is a long-term plan, it’s important to consider how this living arrangement might fit with your hopes for the future.

Thinking about the bigger picture will help you understand if it’s right for you and your family. Feedback from different couples using a nesting approach has been mixed. Some feel that it has been a positive experience for everyone involved, while others have felt that it has been confusing for their children as they deal with their parents’ divorce.

For it to work well, your relationship must have trust. It is also important to be open with your children. Keep talking to them about what’s going on and explain what you’re doing. With clear communication and setting boundaries, it is possible to make nesting a success – but it is important that you plan for different scenarios rather than jumping in feet first.

The opinions in this column are intended for general information only and should not be used as a substitute for professional advice. The Financial Times Ltd and the authors are not responsible for any direct or indirect results arising from any reliance on responses, including loss, and exclude liability to the fullest extent.

Do you have a financial dilemma that you would like FT Money’s team of professional experts to look into? Send your problem in confidence to [email protected]