I paid a party that called me, where does that money go afterwards?
Date: | Week: 37 | Reading time: 7 minutes | Updated: Author: Tyler Dijst, blockchain investigation specialist
In short
Money after investment fraud usually passes through four stages within a few days: intake, pooling, spreading and exit at a service provider. That route can often be traced afterwards, up to the point where the money enters a service provider. Whether your payment followed that route, and whether it really is fraud, only becomes clear once someone looks at it properly.
Paucitas maps routes like this transaction by transaction, in hundreds of cases a year, with a turnaround from the same day to around two weeks.
Get in touch with Paucitas and we will have a look with you, without obligation.
In a nutshell
Your money leaves a trail, even when the platform has gone quiet. The sooner someone records the route, the more complete the picture. Paucitas works it out for you and puts it in a report you can take to the police, your bank or your solicitor.
You had a phone call, there was talk of returns, you invested and then everything went quiet. Or there was a request for yet another payment. That is a horrible feeling, and you are far from the only one. The question that follows is nearly always the same: where is my money now?
Where does money go after investment fraud?
With crypto investment fraud, your money often follows a set route in four stages. They usually follow one another within days, and each stage leaves a different kind of trail.
- Intake: your payment arrives at an address often used only for you.
- Pooling: your amount is combined with payments from other people.
- Spreading: the total is split across several addresses, sometimes across other networks.
- Exit: parts arrive at a service provider, the so-called cash-out point.
It can look as if the trail goes cold, but that is often not the case. The pooling with other payments is exactly what makes a pattern visible, and that pattern can be described well in a report. Which stage tells us most in your case differs from one situation to the next. Paucitas works that out for you.
Not every silence means fraud, by the way. Sometimes a platform does exist but communicates badly, or a withdrawal is held up for another reason. That is worth knowing for certain too.
Has my money already been turned into pounds?
Often not entirely, at the moment you first start to have doubts. That is why the moment you act matters. Converting happens at a service provider, and from that point the balance can only be known through that provider. Broadly there are three situations: the funds are still on addresses without a provider, they have arrived at a provider, or the route has been deliberately muddied. Each calls for a different approach, and in each a good report gives you something to work with.
Not sure whether it is still worth it? Let Paucitas take a look. You can always ring us, 24/7, on +31 20 244 5774. Through the form you will hear from us within 1 to 3 hours.
What can Paucitas establish for you?
Paucitas looks into everything: your payments, the route of the money, the addresses and providers it passed through, the documents and the timeline. Paucitas does all tracing itself, without tracing tools, and checks every transaction individually. On top of that, Paucitas reads through all the conversations, messages, documents, emails and other communication, so you get a complete picture, with a timeline and where all the money went, step by step. You receive a report that anyone can follow and understand step by step.
Sometimes the money turns out to be somewhere you can still reach yourself, for instance your own wallet where access can be restored technically. Sometimes the report shows exactly which provider received the money, so the police, your bank or your solicitor can follow up in a targeted way. And sometimes it turns out not to be a scam at all. Either way, you know where you stand afterwards.
Case: four payments, nine addresses, two providers
Someone had invested four times in six weeks after calls from a friendly adviser. Within five days the four payments came together on one address, where payments from other people also arrived, and were then spread across nine addresses. Six of those could be traced to two service providers. With the report she could make a targeted report to the police, with transactions already identified and checkable.
Names, amounts and details differ from reality; the situation is as we come across it in practice.
What you can gather now
Your payments in a list, with date, amount and, if you have it, the transaction code, the message history and screenshots of the platform before they disappear. That is all you need to start; we work out the rest together. Paucitas never asks for your recovery phrase or private key.
How quickly should you act?
As soon as you can, without panicking. The sooner the route is recorded, the fuller the picture. It is sensible not to pay in any more, even if you are told you first need to cover fees or tax. If you paid a platform by bank transfer, also read following a transfer to a fake platform. If the route ends at a well-known exchange, tracing stolen crypto to an exchange will help.
You can check whether the firm that called you is authorised on the FCA Warning List. The FCA also explains how recovery room scams work.
Watch who gets in touch with you afterwards as well. Anyone who promises to get your money back for an upfront fee deserves extra caution.
What can you do with the Paucitas report?
The report shows whether there is still money available, or where it has gone, and what the next steps are. If it was a scam, that might be a report to Report Fraud in England, Wales and Northern Ireland, or to Police Scotland in Scotland. The Paucitas report is a strong attachment to that, because it already sets out the route fully and clearly. What a route across several networks looks like is shown in the USDC fraud case across three networks. What we do for private individuals is on the page for private individuals.
Every investigation is tailored: you receive a bespoke quote in advance that we go through together, with no surprises. A free intake is without obligation. Want to know where your money went? Get in touch with Paucitas. You can always ring us, 24/7, on +31 20 244 5774. Through the form you will hear from us within 1 to 3 hours, and we answer emails within 24 hours, usually the same day.
Sources: FCA, Warning List of unauthorised firms; FCA, recovery room scams; Report Fraud; Police Scotland, scams and frauds.
Do you have questions about this blog?
Feel free to get in touch with Paucitas. Paucitas can be reached by phone 24/7, including evenings and weekends. Through the contact form we usually reply within 1 to 3 hours, and we answer e-mail within 24 hours.
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Frequently asked questions about money after investment fraud
Is my money pooled with payments from other people?
Paucitas sees that this often happens, usually within a few days. For the investigation that is no drawback: from that point on we can calculate, transaction by transaction, which share came from your payment.
Can you see which provider received my money?
Paucitas can see that in many cases, yes. Paucitas records where the funds arrived, so the police, your bank or your solicitor can follow up in a targeted way.
Can I get my money back after investment fraud?
Paucitas: that depends on your situation. If you still have access to your own wallet or account holding funds, there may still be options. If everything has been sent to the fraudsters, the picture is different. That cannot be judged from a distance. Paucitas first looks at your situation and tells you honestly what is and is not possible. Be careful with anyone who promises in advance that your money will come back. In doubt? Contact Paucitas and you will know where you stand.
How quickly do I need to act?
Paucitas advises: as soon as you can. The sooner the route is recorded, the more complete the picture. It is best not to pay in any more.
What does an investigation cost?
Paucitas tailors every investigation. You receive a bespoke quote in advance that we go through together, with no surprises. The intake is free and without obligation.
From Amsterdam, for the whole of the UK
Everything can be done fully online. Prefer to meet in person? You are very welcome at our office in Amsterdam, by appointment.
Paucitas is an independent expert firm based in the Netherlands that, for clients across the UK, investigates investment fraud and crypto fraud, establishes the origin and legitimacy of crypto assets and prepares expert reports for legal proceedings and compliance.
Your own situation
If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.
The first step is contact by phone. You can book that call by phone or through the contact form, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.