Breaking News - First Default Judgment Where The Claimant Is Based Abroad

• Jurisdiction: United States,Federal
• Law Firm: Giambrone & Partners
• Subject Matter: Criminal Law, Technology, White Collar Crime, Anti-Corruption & Fraud, Fin Tech
• Author: Ms Joanna Bailey
• Published date: 19 October 2023

The High Court granted the first default judgment in a claim relating to an alleged Bitcoin fraud perpetrated by fraudsters based abroad; the defendants are, an individual known as both Alan Bart and A. Philpott who is associated with FCA Automatic and Capital Usage and persons unknown involved with a crypto wallet at quogi.com related to Quogi Global Ltd., Capital Usage Ltd., Wade Press UK Ltd.

Giambrone & Partners LLP instructed Celso De Azevedo, of Enterprise Chambers to obtain the judgment related to a worldwide freezing order against the foreign fraudsters on behalf of our Italian client, this demonstrates that the English courts will act to protect foreign victims of fraud where there is sufficient connection to England and Wales. This is a significant development and brings the possibility of the recovery of funds lost to fraudulent investment schemes perpetrated by fraudsters based abroad.

Joanna Bailey, head of the banking and financial fraud department, commented "whilst we welcome the FCA's recent initiative in introducing the new rules and regulations governing the promotion of crypto assets, the new regulations are limited and there is nothing in place to match the assistance available in respect of other forms of investment such as shares or Forex." Joanna further pointed out "an investor will not be able to access the Financial Services Compensation Scheme or the Financial Ombudsman Service if they find that they have been defrauded. This is why this default judgment is so important as it provides a route to recovery of lost funds through the courts of England and Wales for foreign victims defrauded by foreign fraudsters based overseas."

What is the Legal Status of Crypto Currency?

The rise of crypto currency has not been embraced with universal

legal standing. In some countries it is legal tender, in others it is banned. There are concerns about the lack of regulation. The Financial Conduct Agency (FCA) has implemented its new rules and regulations on how the promotion and marketing of crypto assets is permitted to be conducted a little over a week ago. However, there is still no financial protection or support if a novice investor is caught in a fraud.

What should you know before investing in Crypto currency?

Learn how blockchain technology works, and the fundamental concepts behind it. Establish which crypto currency you wish to trade in, they are not all the same.

Cryptocurrencies are highly volatile and values can change dramatically...