Requesting a second opinion on a crypto report: how it works
Date: | Week: 36 | Reading time: 7 minutes | Updated: Author: Simcha Schrijver
In short
You request a second opinion on a crypto report by providing the report itself, the underlying transaction data and your own question. You then hear, finding by finding, whether it holds up, cannot be checked or is not supported by the data. Sometimes the original report turns out to be right, and that gives you something solid too.
Paucitas is an independent expert firm in the Netherlands that investigates investment fraud and crypto fraud and prepares expert reports for legal proceedings. We review existing reports for private individuals, solicitors and businesses.
Get in touch with Paucitas or ring +31 20 244 5774. You will soon hear whether a review makes sense in your situation.
In a nutshell
Doubting a report is not distrust; it is care. Paucitas checks each finding against the blockchain and tells you honestly what comes out.
There is a report on crypto transactions in your file, and you cannot really check what its conclusions are based on. Perhaps the other side relies on it, or perhaps you commissioned it yourself and now have doubts. That is an awkward position, especially when a lot is at stake. The good news: a report about the blockchain can, in most cases, be checked. This article explains how a second opinion works and what you can expect from it.
What is a second opinion on a crypto report?
A second opinion is a focused review of an existing report. It is not a new investigation, nor a counter-report with its own conclusion about your case. The question is simple: is what it says correct, and can someone else verify it?
That takes an independent expert with no stake in the outcome. Paucitas checks every finding itself on the blockchain. Not whether the report reads well, but whether it is right.
When does a second opinion make sense?
As soon as a report contains a conclusion that affects your case and you cannot check what it rests on. In practice that often happens at these moments:
- a report is submitted in proceedings;
- the other side relies on a report;
- a report consists mainly of labels and charts, without underlying transactions;
- the conclusion sounds firmer than the data seems to allow.
Do you recognise one of these situations? That does not mean the report is wrong. It may well be right. But as long as you cannot check it, you do not know. Whether a second view is worthwhile in a dispute is covered in independent review in a crypto dispute.
Doubts about a report in your file? Let Paucitas look at it, without obligation. You can ring us at any time, 24/7, on +31 20 244 5774.
What do you provide with a request?
The full report and the data it relies on. Think of the instructions behind the report, the addresses and, for each transaction, the transaction hash, any exchange statements used and what was agreed about the valuation date and price source. Do you not have everything? That is fine to start with. Paucitas helps you work out what is needed. If the underlying data really is missing, that is a finding in itself.
What do you get back?
A separate report that sets out, finding by finding, where things stand. There are three possible outcomes:
- Confirmed: the finding can be traced back to the data.
- Cannot be checked: the finding cannot be verified with the data provided.
- Not supported: the data shows something different from the conclusion.
Paucitas never adjusts the outcome to suit what you are hoping for. A confirmed finding is valuable too: your case becomes stronger and you avoid an argument you cannot win. How such a review can turn out is shown in the case study of an independent review of a crypto report.
An example from practice
In a dispute over a joint crypto investment, a solicitor received a report from the other side. It claimed his client had siphoned off a large sum. The report consisted mainly of charts.
Paucitas checked every finding against the blockchain. Part of it held up. Two important steps in the route turned out not to be backed by transactions, and one address had been attributed to the client without explanation. That allowed the solicitor to focus the debate on what was and was not established.
Paucitas takes privacy very seriously and never shares clients' personal details. This is a composite example: names, amounts and details have been changed. The situation is one we see in practice.
Why is independence so important?
A second opinion is only worth something if the reviewer has no interest in the outcome. That is why Paucitas includes a statement of independence and describes its method so that someone else could repeat it. The evidential value of a review depends more on that than on the length of the report. In England and Wales, expert evidence in civil cases is governed by Part 35 of the Civil Procedure Rules. What that means legally is for your solicitor and, ultimately, the court to decide.
What Paucitas does for you
Paucitas reviews each finding separately: the transactions, the route of the money, the parties attributed, the documents and the timeline. Paucitas also reads the conversations, emails and other communication in the file, so you get the full picture of what happened and where the money went, step by step. Paucitas does all its tracing itself, without tracing tools. You receive a report that anyone can follow and understand step by step, including the court.
- Costs: every investigation is tailored. You receive a bespoke quote in advance, which we go through together, with no surprises.
- Turnaround: from the same day to around two weeks. Often most of the time goes into gathering the underlying data.
- Solicitors: your solicitor can also request the second opinion on your behalf.
What a report for the court needs to meet is covered in requirements for a blockchain report in court. Commissioning a new investigation yourself? Then read what belongs in the brief for a crypto investigation. For solicitors there is a dedicated page.
Would you like to know whether a review makes sense in your case? Get in touch for a free intake, or ring +31 20 244 5774. Through the form, you will hear from us within 1 to 3 hours.
Source: Civil Procedure Rules, Part 35.
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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More on Paucitas
Frequently asked questions about a second opinion on a crypto report
I do not trust a crypto report. What can I do?
Paucitas advises having the report reviewed by an independent expert. We check each finding to see whether it can be traced back to the blockchain.
Can a second opinion be done without the underlying transaction data?
Paucitas can then only give a reading opinion. We first help you work out which data is needed and how to obtain it.
What if the second opinion confirms the original report?
Paucitas then says so in the report. That is a useful outcome too, because it strengthens your case.
Does Paucitas take a position on my case?
Paucitas takes no position and only establishes whether the conclusions are supported by the data. The position remains with your solicitor.
Can my solicitor make the request?
Paucitas is happy with that: your solicitor can request the second opinion on your behalf. We then agree the question with them beforehand.
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.