Background
Last year, we detailed how INTERPOL devised a “global stop-payment mechanism” which enabled it to recover the largest-ever amount of funds (specifically $42.3 million) following a business email compromise scam. In addition, seven individuals were arrested.
We noted how this development strengthened INTERPOL’s reputation for assisting in the investigation of large-scale fraud on a global level. This includes previous efforts to intercept hundreds of millions of dollars linked to various cryptocurrency scams.
INTERPOL’s ongoing Operation HAECHI V has yielded even further significant results. As part of this operation, INTERPOL issued a Purple Notice to alert countries about an emerging cryptoasset fraud scheme.
INTERPOL’s Operation HAECHI V
One of INTERPOL’s other ongoing operations involving cryptoassets is Operation HAECHI V. It is an international operation targeting multiple cyber fraud schemes, often involving cryptoassets.
A part of this Operation, INTERPOL issued a Purple Notice to warn countries about the emerging cryptocurrency fraud scheme involving stablecoins – specifically, the “USDT Token Approval Scam”, which allows fraudsters to access and control victims’ cryptocurrency wallets. The fraudsters can then transfer funds out of the victim’s wallet without the victim’s knowledge.
For more information about INTERPOL’s Purple Notice, please see our previous blog:
INTERPOL and cryptoassets
We have previously written about INTERPOL’s specialist teams that coordinate global efforts against digital asset-related crime.
There have been increasing reports of countries using INTERPOL to pursue individuals accused of criminal activity involving cryptoassets.
INTERPOL has recently intensified its actions against online digital wallets and exchanges, including the seizure of Cryptonator – an exchange allegedly receiving the proceeds of crime.
Suitability of INTERPOL
There is no doubt that crypto-related crime presents unique challenges to the authorities. The decentralised nature of cryptocurrencies and the lack of direct oversight from conventional financial institutions create significant hurdles for international policing.
The UK continues to pass legislation enabling the authorities to investigate and seize assets linked to criminal activities involving crypto (please see our other blogs on crypto regulation).
Other INTERPOL members, however, may not be as quick in establishing a regulatory framework, making international cooperation even more challenging.
Given the borderless nature of some cryptoasset transactions, an organisation with global reach like INTERPOL is well-positioned to assist in both pursuing the individuals accused of criminal offences involving crypto and tracing any associated proceeds of crime.
However, it remains important to ensure that INTERPOL is always used in compliance with all its applicable rules and regulations.
International dimension of crypto-related offences
Using INTERPOL to pursue suspects in crypto-related cases is not unheard of. Following reports that South Korea had asked INTERPOL to issue a Red Notice for developer Do Kwon – the founder of the failed crypto currency Terra, Gherson’s criminal litigation, investigations and regulatory team wrote a blog titled “Can INTERPOL issue a Red Notice in relation to allegations involving crypto?”.
INTERPOL was also involved in attempting to locate Ignatova Bajatova, who was linked with the OneCoin scandal.
As well as being at risk of INTERPOL measures such as Red Notices, those who fear that allegations involving crypto have been made against them could also be at risk of extradition.
As was discussed in a previous blog entitled “Can I be extradited for allegations involving crypto?” and “Another US crypto extradition”, due to the borderless nature of crypto transactions, any allegation of criminality will inevitably involve multiple jurisdictions. As such, multiple jurisdictions may assert their authority and seek to extradite suspects to face justice. For example, there have already been two cases of individuals being extradited to the US for alleged crypto-related crimes.
The vast majority (if not all) of criminal allegations that underpin a crypto criminal investigation are of a financial crime nature, e.g. fraud, money laundering and insider dealing. They can also include alleged offences relating to the breach of financial regulations.
These offences, by their very nature, can take place across multiple jurisdictions and are therefore types of offences for which extradition is a viable option for many countries.
Due to the borderless nature of the effect of these crimes, a country could assert jurisdiction against an individual who has not even stepped foot on its territory.
As such, jurisdictions may additionally utilise INTERPOL to locate an individual and seek their arrest prior to issuing any extradition request.
Therefore, due to the nature of this technology, and as this technology becomes more prevalent, there will surely be a large increase in the instances of INTERPOL being used to locate individuals accused of crypto-related crimes.
International crypto dimension – criminal investigations, litigation and extradition
Those who fear they may be subject to an extradition request from the UK, or who are just concerned about liability across multiple jurisdictions including the UK, should get in touch.
Gherson’s criminal litigation, regulatory and investigatory team combine an expert knowledge of criminal and regulatory law underpinned with a firm understanding of digital assets and blockchain technology. As such, the team are able to provide expert strategic advice to anyone facing investigation in relation to any crypto-related offence. Working alongside the extradition team, Gherson’s criminal litigation, investigations and regulatory team are able to provide an unparalleled service in any case with an international dimension. The team are also able to call upon lawyers in multiple other jurisdictions and build multi-jurisdictional teams to assist with any suitable defence strategies.
INTERPOL, Red Notices and cryptoassets
In addition, those who fear that a jurisdiction may have requested INTERPOL to process data relating to them in connection with crypto-related offences, or are just concerned about potential liability, should get in contact.
Indeed, Gherson Solicitors continue to receive requests for expert advice and assistance from those who fear they may have outstanding financial issues arising. That advice tackles:
- How to best approach a possible INTERPOL Red Notice;
- Preparing for potential criminal proceedings / an extradition request;
- Preparing for a situation where a civil matter or commercial dispute could be used to initiate bogus criminal proceedings; and
- Exploring the possibility of instigating civil litigation proceedings to recover any misappropriated assets.
Gherson have previously written a series of blogs designed to assist those who fear they might be subject to INTERPOL measures (including a Red Notice):
- INTERPOL and Red Notice Challenges
- How to Remove an INTERPOL Red Notice
- INTERPOL Red Notices and Extradition
- How do I know if I am subject to an INTERPOL Red Notice
Regulation and compliance
In these constantly changing times, firms that deal with cryptoassets, and additionally have exposure to firms that do, will need to carefully consider all their systems and controls to ensure that they are able to comply with all relevant AML and sanctions regulations.
Updated: 10 February 2025
How Gherson can assist
Gherson’s white-collar crime and regulatory team are able to provide advice and assistance with AML and sanctions compliance, including in situations involving cryptoassets.
Additionally, the team has recently started a series on the regulation of crypto, with the aim of advising those who work in the compliance of this sector. In addition, for those who would like advice on relevant issues, including those who have had issues with the FCA registration process, our specialist regulatory and compliance team can guide individuals and companies through the process.
Please do not hesitate to contact us for further advice, send us an e-mail, or, alternatively, follow us on Twitter, Facebook, or LinkedIn to stay up-to-date.
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
©Gherson 2025