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Rahman Ravelli represents client in landmark “pump and dump’’ cryptocurrency case

Author: Syedur Rahman  12 August 2021

Rahman Ravelli’s Syed Rahman highlighted the practice of “pump and dump’’ in cryptocurrency fraud as he represented a client in a case that marked a legal first.

In the case, fraudsters hacked their way into his client’s cryptocurrency accounts that were held on the Binance exchange. While they were unable to remove the assets from the accounts, they were able to trade the assets to a third party linked to themselves at a fraction of their true value. By then selling those assets at their proper value, the hackers took their illegal gains out of the exchange, leaving the genuine owners of the hacked accounts facing losses estimated at over $2.6 million.

This was the first case involving such activity to come before the courts.

Mr Rahman said: “While restrictions on the exchange accounts that were hacked made it impossible for the hackers to simply take what was in the accounts, it did not prevent them abusing the trading system to create illegal gains which they then kept for themselves.

“Pump and dump is a practice that has not previously come before the courts. It appears to be a step forward in terms of crypto-related crime. It shows the degree of sophistication that is being employed by those looking to make such gains.’’

Syed Rahman successfully sought various forms of relief from the court on an urgent ex-parte basis for:

  • A proprietary injunction, a worldwide freezing order and an ancillary disclosure order against the first respondent.
  • A disclosure order pursuant to the Bankers Trust jurisdiction and/or pursuant to CPR 25.1(g) against the fourth and fifth respondents.
  • Permission to serve out of the jurisdiction and by alternative means

You can find the judgement by clicking here.

Syedur Rahman C 09551

Syedur Rahman

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Syedur Rahman is known for his in-depth experience of serious fraud, white-collar crime and serious crime cases, as well as his expertise in worldwide asset tracing and recovery, civil recovery, cryptocurrency and high-stakes commercial disputes.

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