The Crypto Fraud and Asset Recovery Network (CFAAR), which calls itself the first global network of its kind, has launched a Hong Kong-based chapter in collaboration with seven local finance, law, and crypto regulation experts.
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- The Crypto Fraud and Asset Recovery network began in the U.K. in August 2021, under the international commercial law firm Reynolds Porter, in light of rising crypto-related fraud.
- Chainalysis, an American blockchain analysis firm, has reported that the overall value of digital assets lost to crypto crime decreased this year but the value of cryptocurrency stolen in hacks is outpacing 2021 year-on-year, with US$1.9 billion stolen between January and July this year.
- “The increased uptake of digital assets and of related illicit activity is driving a sizeable uptick in disputes and court cases in Hong Kong,” wrote the group of founding members in a Tuesday press release.
- The Hong Kong group will work closely with other branches to make digital asset adoption safer and more secure by acting as an independent voice in crypto-related judicial and regulatory matters within Hong Kong.
- CFAAR will promote legal and investigative tools to recover digital assets lost to fraud, improve counseling of fraud victims, and encourage best practices among the city’s digital asset service providers.
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