Lauren Bowkett and Harry Devine successfully applied to set aside two Crypto Wallet Freezing Orders (“CWFO’s), in which over £1.4 million of crypto assets were frozen by the Metropolitan Police. 

The team successfully argued that the Police had not reached the evidential burden required to freeze the crypto wallets and that no evidential material in any capacity, nor any examples of the transactions the Police were relying on, had been provided.   Lauren’s client, who is a high-net-worth individual, was able to evidence the source of the crypto assets. Lauren and Harry then prepared a robust response highlighting the inaccuracies within the Police application, including the Police’s assertion that the movement of the client’s crypto was evidence of ‘peeling chains’ as opposed to profit maximisation and standard practice as a Crypto Investor.

The Client’s Problem: Two Crypto Wallets Frozen

• The client had instructed JMW to advise, assist, and make representations in relation to the CWFO’s that were made without notice and reasoning.  The client had initially corresponded without representation with the Metropolitan Police, but instructed JMW as experts in the field, as they had felt no progress was being made.
• The Application’s which are made by the Police, and ordered by the Court, created undue stress and anxiety for the client, directly impacting his ability to trade Cryptocurrency, and restricting his primary source of income.
• As well as the CWFO’s, JMW were also instructed in relation to the criminal investigation in which the client was alleged to have laundered the proceeds of crime through the frozen crypto wallets.
• In relation to the CWFO’s, the Police asserted that the funds held within the wallets were intended for use in unlawful conduct.  The Court granted the initial applications without notice and froze the wallets for a period of 6 months, leading the client to seek the assistance of JMW in setting aside the orders and defending his credibility with the banks with which he was affiliated, alongside his overall professional reputation.
• The client, who is classified as a UK Tier 1 Investor, required advice and assistance in relation to any future potential impact the criminal and civil investigation may have had.

How JMW helped

• The client instructed JMW in relation to both the civil and criminal investigations.  After detailed submissions and representations were made to the financial investigator, the criminal investigation into the client was discontinued and the CWFO’s expired.
• A thorough investigation into the client, their finances and source of the Cryptocurrency was conducted which the Police asserted they had performed to evidence that the funds were recoverable property and had been laundered through the crypto wallets.
• A comprehensive application to voluntarily set aside the CWFO’s, which was only possible due to Lauren’s expert understanding of the Proceeds of Crime Act 2002.  The detailed application outlined numerous legal arguments and highlighted flaws in the Police investigation and evidence.  It was her view that having determined that the Police had not reached the appropriate burden of proof, and held no grounds to pursue a criminal investigation, that the CWFO’s should be set aside.

Outcome: Both CWFO’s were discharged and the Investigation Discontinued

• We are pleased that the Police accepted the submissions and that we satisfied their concerns regarding the source of the client’s Crypto assets. The robust application prepared and evidence bundle supplied subsequently meant that the Police could not extend the CWFO by up to a further 18 months. 
• The client was granted access to his wallets within 6 weeks of instruction.  The client had spoken to many firms before JMW’s instruction but felt Lauren had the understanding, knowledge, and expertise to handle the high-value CWFOs. 
• In securing expert legal representation from JMW, the client has avoided having to endure possibly a further 18 months with the wallets being frozen and a contested court hearing in relation to the frozen funds.  This would have incurred greater costs for the client.  This is important as there is no public funding or automatic entitlement for either party to receive their costs in these proceedings. It was also vital to the client in accessing these funds as soon as possible, due to the volatile nature of Cryptocurrency and the necessary oversight required to profit from them.
• Lauren and Harry have been commended by the client for their great work in this matter and securing the discharge of the CWFO’s, which would not have been possible without their expert advice and assistance.