Crypto Wallet Freezing Order Solicitors

With the introduction of the Economic Crime and Corporate Transparency Act 2023, authorities and investigators in the UK have new powers to freeze, seize and recover digital assets through the use of crypto wallet freezing orders. These orders can be granted by a Magistrates' Court based on a relatively low evidence threshold, and restrict access to any funds or crypto assets held in particular crypto wallets, for all account holders, for a period of up to two years.

For an individual, investor or business relying on these funds, a freezing order can create significant disruption to daily life. Thankfully, there are legal options available if you have had your access to a particular crypto wallet or asset frozen that can help you take back control. At JMW, we have represented many clients to recover digital assets, funds in bank accounts and building society accounts, physical assets, and crypto assets and wallets, and advised at each stage of the process.

To find out more about how we can help individuals, investors, cryptocurrency exchanges and wallet providers when crypto wallet freezing orders are put in place, call JMW's experts today. You can reach us on 0345 872 6666 or use our online enquiry form to request a call back at your convenience.

How Can JMW Help?

At JMW, our digital asset and financial crime experts offer a range of legal services that you may need if you are under investigation. Thanks to our experience with account freezing orders of all kinds, our expertise in asset recovery proceedings and other financial crime, and our specialism in disputes involving cryptocurrencies, we are well-positioned to support you no matter your needs.

For clients who have had their crypto or other digital assets frozen, we can take urgent action to have the order varied or discharged. If required, we can also engage forensic experts to examine your trading and transactions to evidence why the assets are not ‘recoverable property’. It is vital to secure the support of a crypto wallet solicitor if you are facing an investigation of this nature, as submitting material yourself, without seeking legal advice, could make the position worse or even incriminate yourself.
If the enforcement bodies start separate criminal proceedings, we can also defend you against allegations of crypto fraud or related criminal conduct. As a full-service law firm, JMW can also offer media and reputation management services to protect your good name in cases of public interest.

What Is a Crypto Wallet Freezing Order?

A crypto wallet freezing order is a legal measure that prevents an individual or entity from accessing or transferring cryptocurrency held in a specific wallet. These orders are made by a Magistrates' Court to support investigations into suspected criminal activity, fraud, money laundering, or other illicit financial practices involving digital assets. There is a relatively low threshold of evidence needed to secure a freezing order, and the court may grant the order if there are reasonable grounds to suspect that:

• The crypto assets are linked to criminal conduct or activity;
• There is a risk that the assets will be moved beyond the reach of authorities;
• The order is necessary to preserve the digital assets during an investigation.

Law enforcement agencies and bodies such as the National Crime Agency, the Serious Fraud Office and the Financial Conduct Authority can all secure freezing orders, as can the police, and they are particularly common in cases involving financial crime. The decentralised nature of cryptocurrencies makes it difficult to identify ownership and jurisdiction of particular crypto assets, but there are other new powers granted under the Economic Crime and Corporate Transparency Act 2023 designed to address these difficulties.

For crypto investors, the risk of having crypto assets not only frozen, but recovered under a crypto wallet forfeiture order or, in rare cases, destroyed, can represent a serious threat. Further, a crypto wallet freezing order can be granted without notice, meaning that you would not receive advance warning before the order takes effect. This approach is used to prevent the dissipation of funds and ensure that suspected criminal assets remain accessible for further investigation or confiscation. However, it could leave you without access to your assets and with no way to pay for living expenses, operating costs for a business, or the legal support you need to regain access to your assets.

Is There a Risk My Crypto Assets Will Be Frozen?

If you own or invest in digital assets like cryptocurrencies or non-fungible tokens (NFTs), there can be a risk of having your assets frozen. There is a relatively low standard of proof required for authorities to secure a freezing order, and the types of large transfers that are common in crypto trading may be viewed as suspicious. This can be enough for authorities to secure a freezing order, at which point your assets can be held outside of your control for a period of up to two years (or longer) while an investigation takes place.

Often, you will not know that the order is going to be put into place until it applies. However, there are legal arguments that can be made to have the order varied or discharged. The ability to vary the order can grant you access to funds for day-to-day living costs, the operating expenses a business needs to keep trading, or the support of an expert solicitor.

If your access to your crypto assets is frozen, seek expert legal advice to find out more about the legal remedies that may apply, and begin preparing a defence if you are suspected or under investigation for any kind of economic crime. The team at JMW can often help to have charges dropped and crypto wallet freezing orders varied or discharged before criminal proceedings begin.

Why Choose JMW?

JMW's business crime and regulatory defence team has been ranked in Tier 1 of the Legal 500 and Chambers and Partners guides, which represents our commitment to developing tailored strategies and securing the outcomes our clients deserve.

We are thoroughly experienced in crypto litigation, NFTs, blockchain technology and other emerging areas. Attempts by law enforcement agencies to freeze and recover crypto assets may be new, but they are based on powers that were introduced to the Proceeds of Crime Act 2002 and occupy a similar position in the legal landscape. Thanks to JMW's experience in such investigations and in having account freezing orders varied or discharged, we can apply our knowledge of the law to the intricacies of crypto assets and secure the best possible outcome.
Our experience and expertise in this area has brought us to the cutting edge of this evolving area of the law, and we know that the right legal arguments can see your access to your digital assets restored, or vary the order so you can afford the things you need. Beyond this, we provide legal defence services should criminal proceedings be commenced, in addition to dealing with all matters at the pre-charge or investigation stages. We have represented clients across all types of UK courts and defended against allegations of all forms of unlawful conduct, but we specialise in pre-charge engagement during the investigation stage, including both crypto wallet freezing orders and account freezing orders. Get in touch with our team to learn more about how we can help you.