Crypto Fraud Recovery Litigation - Murphy's Law

Crypto Fraud
Recovery Litigation

Litigation Services

My step-by-step process for favorably resolving your crypto fraud claim:

1. Engagement Interview

When we first meet, I will ask targeted questions to ensure I understand the critical facts necessary for proving your fraud claim, and we will sign an engagement letter.

2. Conduct Investigation

Next, I will review the relevant blockchain transactions, investigate all relevant facts, and advise you on whether there is a viable fraud claim under federal law and whether asset recovery is possible.

3. Prepare Demand Letter

After determining you have a viable claim, I will prepare a compelling demand letter to send the scammer(s), where I lay out all the facts underlying your fraud claim and demand a recovery of your lost funds and cryptocurrencies. The letter will assert that we are prepared to litigate if the scammer(s) fail to comply with your demands. Using all modes of technology, Liam will ensure that the scammer(s) receive the demand letter.

4. Draft Complaint

We then will draft a comprehensive complaint that lays out facts sufficient to allege that the scammer(s) committed fraud and will send the complaint to the scammer(s), before commencing litigation, with the aim of resolving the dispute outside of court.

5. Commence Litigation

Crypto Frauds

Pump and Dump Scheme
(“Rug Pull”)

Rug pulls involvement scammers “pumping up” a new cryptocurrency project by adding a large amount of capital to lure in victims, and then once new investors buy tokens at an artificially high price, the scammers sell their entire supply of the tokens, leaving the victims without any liquidity and with the now worthless scam tokens.

EXAMPLE: $HAWK (Hawk Tuah Girl) - The coin has faced a lawsuit alleging illegal promotion of an unregistered security and suspicions of a "rug pull" scheme, leading to rapid value fluctuations and legal challenges for its creators and promoters.

Ponzi Scheme

Ponzi schemes pay older investors with the proceeds from newer investors. To get fresh investors, scammers lure victims to deposit their cryptocurrency with the fraudster in exchange for heightened returns.

EXAMPLE: In 2024, a Ponzi scheme led by brothers lured investors by promising 13.5% monthly returns by claiming their bot could exploit price differences on cryptocurrency exchanges. However, the $60 million raised by this Ponzi scheme was used to buy luxury purchases, and so the SEC charged the brothers for committing fraud.

Social Engineering Fraud

Scammers will use psychological manipulation and deceit to trick people into giving them access to their accounts and sending them cryptocurrency.

EXAMPLE: “Pig Butchering Scam” / Frauds using romance – scammers use dating websites to make unsuspecting individuals into victims by asking for cryptocurrency in exchange for helping a sick loved one or by promising a lucrative cryptocurrency opportunity.

Public Misrepresentations (“Lies”)

If a cryptocurrency developer or exchange makes a material lie about the financial condition of a project or platform, and if investors rely on that lie when making their decision to invest, then those investors may have a fraud claim.

EXAMPLE: Example: Celebrity posts on social media (X, TikTok, etc.)