Crypto scams are a growing menace in Hong Kong, with losses skyrocketing to $3.1 billion in the first 10 months of 2024 alone. If you’ve been hit, don’t despair—legal options exist to fight back. At TITUS, we’ve helped clients navigate this maze, and in this third instalment of our crypto scam series, we reveal the three key legal routes to resolve these frauds: reporting to stablecoin issuers, working with the police, and launching civil litigation. Ready to reclaim your funds? Let’s explore your options!
Option 1: Reporting to Stablecoin Issuers
If your scam involves stablecoins like Tether (USDT), the issuer could freeze or manage the tokens—but only with a police or court order.
- How It Works: Contact the issuer (e.g., Tether at tether.to) with details of the scam. They won’t act without legal backing, so you’ll need to escalate quickly.
- Next Steps: Report to the police or seek a court order—both complex processes. TITUS can help you action the necessary steps to begin the process as fast as possible.
- Why It’s Tricky: Issuers defer to law enforcement, making this a slow route without legal support.
In 2023, a Hong Kong woman lost $3.1 million in a Tether scam, showing how common this is. Don’t wait—act now with expert help.
Option 2: The Police Route
The Hong Kong Police, especially the Cyber Security and Technology Crime Bureau (CSTCB), are your go-to for reporting crypto scams. Speed is everything to freeze assets before they vanish.
- How to Report:
- Call 999 for emergencies.
- Dial the Anti-Deception Coordination Centre (ADCC) hotline 18222 for advice.
- Visit a police station or use the e-Report Centre online (Hong Kong Police).
- Bring evidence: transaction IDs, screenshots, emails—everything you’ve got.
- What Happens Next: The CSTCB investigates and may seek court orders (although such orders will often have to be sought via civil actions independent to the police investigation, see below for details on the same) to freeze accounts. TITUS can connect you to the correct police units and streamline the process.
- The Catch: Not all police departments understand crypto scams, and recovery gets tough as funds are further transferred. Legal guidance is key to keeping things moving.
Option 3: Civil Litigation—A Proactive Strike
Civil litigation lets you take the fight to the scammers, even if you don’t know who they are, by securing court orders to freeze assets or uncover identities.
- How It Works:
- File a claim against “Persons Unknown” using the scammer’s wallet address.
- Seek disclosure orders from platforms or issuers to reveal account holders.
- Get a Mareva injunction to freeze assets—fast.
- Serve legal docs via NFT (yes, really!), a cutting-edge method Hong Kong courts approved in 2023.
- Why It’s Powerful: TITUS has handled cases like this, proving you don’t need the scammer’s identity to start (TITUS). Courts can force action from trading platforms or stablecoin issuers.
- The Challenge: It’s complex and costly, needing expert lawyers to pull off.
Fun fact: Serving via NFT is legit in Hong Kong—like a digital “you’ve been served!”—making it a game-changer for blockchain fraud.
Why You Need Legal Help Now
All three routes—stablecoin reporting, police action, or civil litigation—are tangled and time-sensitive. Without legal know-how, you could miss your shot at recovery, especially if funds cross borders. TITUS has the experience to guide you through, whether it’s getting police orders or filing an NFT-served lawsuit. Contact us today at info@titus.com.hk / +852 3702 0045 to start fighting back!