Our client lost around £150,000 after being drawn into a cryptocurrency investment fraud that began with an unexpected WhatsApp message and developed into what he believed was a genuine relationship. Part of the money came from his pension, and he also took out a £25,000 personal loan to fund the investment. After his initial attempts to recover the money failed, he contacted WRS. We recovered more than £150,000 including interest, had the loan effectively written off and had the related adverse entries removed from his credit file.
Key Takeaways
1. Romance fraud is built on trust
Fraudsters can spend months building a genuine-seeming emotional connection before money is ever mentioned. That trust is then used to influence financial decisions.
2. A successful early withdrawal does not prove a platform is genuine
Scammers may allow a small withdrawal at the start to build confidence and encourage the victim to invest larger amounts later.
3. Borrowed money can form part of the recovery strategy
Where a loan has been taken out because of a scam, it may be possible to challenge the associated interest, charges and adverse credit-file entries as part of the wider case.
4. An initial rejection does not have to be the end of the matter
Our client was initially told that no error had occurred and that no refund would be paid. Further investigation, tracing evidence and legal escalation led to a very different outcome.
At a glance
Scam type
Romance and cryptocurrency investment fraud
Initial loss
Approximately £150,000
Total recovered
Over £150,000 including interest
Loan outcome
£25,000 personal loan effectively written off, with interest and charges removed
Timeframe
Around 9 months
The challenge
Our client lost around £150,000 to a romance-led cryptocurrency investment scam. Over several months, someone he believed he was in a relationship with gained his trust and drew him into a fake trading platform. He funded his investments partly from his pension and partly with a £25,000 personal loan. When he asked to withdraw, he was told to pay more to "verify" his account. He sent a further £40,000, but that money was lost too and he received nothing back. His first attempt to get redress was rejected outright. He was left with serious losses, an outstanding loan and a damaged credit file, and he didn't know where to turn.
Our strategy
Luke Caldwell, a member of our Legal Team, took on the case. Our in-house cryptocurrency tracing specialists carried out a full investigation into how our client’s funds had moved. The investigation found hallmarks of organised fraud, including funds being mixed with money from other victims in high-activity wallets and the use of counterfeit cryptocurrency tokens. Using that evidence, Luke pursued the matter through our legal processes and complaints procedures and built a strong case on our client’s behalf. The outcome included refunds covering the majority of the losses, 8% simple interest a year on refunded amounts, removal of all interest and charges on the £25,000 loan, and removal of the related adverse entries from our client’s credit file.
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How the fraud began
Our client was contacted unexpectedly on WhatsApp by a woman he had never met. Over several months, their conversations developed into what he believed was a genuine relationship, with daily contact, shared personal details and growing trust.
Money was only introduced after that relationship had been established. She told him about her success trading cryptocurrency, shared screenshots of supposed profits and offered to guide him through the process.
Before investing, our client researched both the trading platform and the cryptocurrency exchange he had been told to use. The exchange was a legitimate, well-known provider and he found nothing that caused obvious concern. Trusting someone he had come to care about, he began to invest.
When our client tried to withdraw his funds
At first, everything appeared genuine. Our client could see his supposed portfolio growing and was even able to make a small withdrawal early on, helping to reinforce his confidence in the platform.
Over the following months, he made a series of substantial payments using money from his pension and a £25,000 personal loan. In total, he transferred around £150,000.
When he later tried to withdraw his profits, the money never arrived. He was told his wallet had been flagged as “suspicious” and that he needed to deposit a further £80,000 in cryptocurrency to verify the account. Under considerable pressure, he raised around £40,000 and sent it. That money was not returned and no withdrawal was processed.
The personal impact
Once our client realised he had been the victim of fraud, the financial consequences were severe, but so was the personal impact. He had placed significant trust in someone he believed he had a genuine relationship with, and that trust had been deliberately exploited.
When he first tried to recover the money, he was told that no error had occurred and that no refund would be made, leaving him feeling that the system had failed him when he most needed help.
Tracing the cryptocurrency trail
After hearing a WRS advert on the radio, our client contacted us and Luke Caldwell, a member of our Legal Team, took on the case.
Our cryptocurrency tracing specialists investigated how the funds had moved across the blockchain. The investigation found that his money had been mixed with funds belonging to other victims in high-activity wallets. It also identified counterfeit cryptocurrency tokens, a tactic used to make victims believe funds remain accessible.
The evidence demonstrated clear hallmarks of organised fraud and became an important part of the case.
Escalation and recovery
Using the tracing evidence, Luke pursued the matter through our legal processes and complaints procedures and built a strong case on our client’s behalf.
The outcome was substantial:
- A full refund of scam-related payments made during the first phase of the fraud, covering most of the losses
- A 50% refund of payments made during a later period
- 8% simple interest a year on all refunded amounts
- The £25,000 personal loan effectively written off, with all interest and charges removed
- All adverse credit entries relating to the loan removed from our client’s credit file
Including interest, the total recovery exceeded £150,000.
