Private crypto prosecution defeated

Markus Findlay and Oya Suleyman of EBR Attridge LLP have successfully defended the Managing Director of a Canary Wharf-based cryptocurrency investment firm against a private prosecution.

The client faced three counts of making misleading statements regarding two cryptocurrency investment schemes, contrary to section 89(1) of the Financial Services Act 2012. It was alleged that the Complainant had suffered losses exceeding £50,000 based on these statements and argued that the client should have been aware of a Financial Conduct Authority (FCA) warning concerning the schemes.

Markus’ application to stay the private prosecution as an abuse of process forced the prosecution (led by a King’s Counsel) to apply to quash the indictment. Markus successfully argued that the Complainant did not have the consent of the Director of Public Prosecutions (DPP) pursuant to section 401 of Financial Services and Markets Act 2000 which was essential in order to bring the case.

The Court made a Defence Costs Order in the client’s favour. He was also relieved to have his good character preserved.