Asset Recovery (Crypto) is a highly specialized and complex legal service aimed at retrieving stolen, lost, or fraudulently obtained digital assets. In the cryptocurrency world, there is a common misconception that "code is law" and transactions are irreversible, making theft legal. This is false. Under Georgian legislation, cryptocurrency is considered an intangible property asset, and its misappropriation is punishable. Asset recovery requires not only legal knowledge but also the application of "Blockchain Forensics" technologies to trace funds and identify their final destination (e.g., a centralized exchange).
The service encompasses a comprehensive process, ranging from technical investigation to judicial enforcement. The stages include:
- On-chain Investigation: Tracing the movement of stolen funds using specialized software to determine where the asset stopped (e.g., which exchange or wallet).
- Legal Notice: Sending formal letters to crypto exchanges or other providers requesting the freezing of suspicious accounts based on internal AML policies.
- Criminal Prosecution: Collaborating with law enforcement agencies, presenting evidence, and initiating cybercrime investigations.
- Civil Litigation: Filing lawsuits for unjust enrichment or damages and obtaining court orders to freeze assets (interim measures).
- International Cooperation: Coordinating with foreign lawyers and authorities if assets have moved outside of Georgia.
The need for asset recovery arises in various scenarios. Scenario 1: An investor falls victim to "phishing," and a hacker drains their wallet. Blockchain analysis shows funds moved to a large international exchange. Quick legal intervention with the exchange's Compliance department allows for the account to be temporarily frozen. Scenario 2: An investment scam where a "broker" promises returns but refuses withdrawals. Recovery specialists determine the scammers' real identities through digital footprints. Scenario 3: An erroneous transaction or a family dispute (e.g., divorce) where crypto assets need to be located and divided.
The legal framework is based on the Civil Code of Georgia (unjust enrichment, protection of possession) and the Criminal Code (cybercrime, fraud, misappropriation). Although crypto law is new, Georgian courts already have precedents for freezing cryptocurrency. The key to success is speed—the sooner tracing begins, the higher the chance that funds have not been "mixed" and can be recovered.
The process starts with gathering information from the victim (TxID, wallet addresses). Specialists assess the case's prospects: if funds went through a "Mixer" or to an unregulated exchange, chances decrease. However, if the trail leads to a regulated VASP, lawyers initiate legal procedures.
Legal.ge is the platform where you will find lawyers who understand both law and blockchain technology. Lost crypto does not mean lost forever. Act quickly and contact qualified specialists on Legal.ge.
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