Some UK lawyers fraud people by selling bogus properties in exchange for 'Bitcoin'

UK: Digital currency is gaining popularity every day; Bitcoin has now become the favourite mode of international payment for many businessmen. The value of bitcoin has massively increased since it was first introduced in 2009 by an anonymous group of people. Even the tech giant Tesla has agreed to the sale of their electric cars in exchange for bitcoins. The value of bitcoin was $0 when it was first used; however, it now stands as high as more than US$8,000. Like traditional money, the principal purpose of a digital currency is to work as a means of payment, whether that is in exchange for assets, goods or real currency, such as dollars and euros.

Created in the year 2009, Bitcoin is a digital currency that offers lower transaction fees than other payment methods, including traditional online payment gateways. It can be converted into a form of cash as well as bought, sold and traded in exchange for anything.

Bitcoin is accepted as a valuable commodity worldwide, while some people are using the currency to earn easy money through frauds as the money is decentralized and is difficult to track afterwords. Similarly, the United Kingdom is witnessing property frauds through which millions of dollars are bungled from buyers with the involvement of ‘Shady’ lawyers.

The fraudulent activities are now spiralling ever higher in the UK as scams involving cryptocurrency investment rose about 57% in 2020, amounting to about £76.6 million.

A recent incident took place with Jacob (Not real name), who owns expensive property in London. A lawyer advertised the sale of Jacob’s property worth £17 million in UAE at a discounted price of £11 million. Soon after, the property sale was agreed with Dubai based businessman who also agreed to the Bitcoin payment gateway.

Jacob said that he was completely unaware of his property being sold in the UAE or anywhere else in the world.

“A person a few days later came to my house and ringed the doorbell. He asked me whether I live there as his friend in Dubai is purchasing the property for £11 million.”

As the things were disclosed between both parties, they realized that there was a big scam behind it.

“We complained to police about the fraud of lawyers,” he added.

According to UK law, the Solicitor, Barrister or Notary Public can verify the property being sold or the process of transfer. However, there are other considerations, such as Stamp Duty to pay, Capital Gains Tax Liability or Inheritance Tax. Still, the absolute control of sale and purchase remains with the authorized lawyers of the UK.

Bitcoin Modus Operandi

According to experts of investigations against cryptocurrency fraud, immigrant lawyers first obtain the law practising license from the UK and attain the official lawyer title. Later, a pact of con artists locates and identifies the posh, expensive properties to be sold to the high net worth individuals in the different parts of the world, more specifically in the Middle East.

Later, using expert advertising tricks, fraudsters trap a person to purchase a property with a much-discounted amount. As of holding the official lawyer status in the UK, fraudsters close the deal with buyers in exchange for Bitcoins. Following the formalities, the lawyer transfers the property to the buyer and takes the money in the form of cryptocurrency, and then they finally disappear.

Experts said that mainly, this type of scam can be carried out only once, but in fact, the amount involved in it might provide a luxurious lifestyle to the scammer. However, as they do not provide possession of the property to the buyer, the latter is left with nothing.

Complaining to Financial Conduct Authority gives back the rights of the property to its actual (old) owner as it was never legally sold, and the one who made the transaction to purchase the property is then left with nothing.

On condition of anonymity, the official said that mostly, people who swindle larger amounts of money leave the country immediately as digital currency is near to impossible to track. Scammers can liquidate the Bitcoin in exchange for any sort of purchases or paper money.

It is expected that cryptocurrency-related scams are expected to rise as more and more con artists are finding ways to swindle money through the Bitcoin payment gateway.