Case Overview
An investor based in Italy was approached by an online trading platform promising high-yield returns through AI-driven crypto and forex trading. Over a period of four months, the client deposited approximately €162,000 through multiple bank transfers and cryptocurrency payments.
When the client attempted to withdraw profits totaling over €240,000 (as shown on the platform dashboard), the company demanded additional “tax clearance” and “liquidity release” fees. Shortly after refusal to pay further charges, the platform became inaccessible.
Coppell Advisory Solutions was engaged to trace the flow of funds and assess recovery options.
Phase 1: Platform & Transaction Forensic Review
Our team began with:
- Full reconstruction of deposit history (bank wires and crypto transfers)
- Review of platform domain registration and hosting records
- Analysis of communication logs and payment instructions
- Identification of linked beneficiary accounts and wallets
We determined the platform was operating through a network of shell entities and redirect domains, a common structure in organized online investment fraud schemes.
Phase 2: Banking Channel Investigation
For the fiat (bank transfer) portion:
- We traced beneficiary accounts across two European financial institutions
- Identified rapid fund layering through mule accounts
- Flagged receiving banks with structured compliance reports
- Initiated formal fraud notification and recall procedures
Early escalation enabled one receiving institution to freeze a remaining balance before complete dispersal.
Phase 3: Cryptocurrency Flow Mapping
For the crypto deposits:
- Blockchain analysis traced wallet flows through intermediary addresses
- Identified consolidation wallets linked to known scam clusters
- Detected transfer activity into a centralized exchange
- Compiled transaction intelligence report for exchange compliance review
A portion of digital assets was still held within the exchange ecosystem before full off-ramping.
Phase 4: Coordinated Recovery Action
Coppell Advisory Solutions worked alongside legal representatives and compliance departments to:
- Provide forensic documentation supporting fraudulent misrepresentation
- Assist with identity verification and victim claim documentation
- Coordinate cross-border recovery procedures
Outcome
- Total Amount Invested: €162,000
- Amount Recovered: €109,000
- Unrecoverable Portion: Dispersed through layered accounts prior to freeze
- Case Duration: 9 weeks
Key Recovery Factors
- Refusal to pay additional “release” fees
- Rapid forensic reconstruction of transaction history
- Parallel tracing of both fiat and cryptocurrency channels
- Structured compliance engagement with financial institutions
Client Impact
The client gained substantial financial recovery and implemented improved due diligence measures for future investments, including third-party verification of trading platforms and regulated broker confirmation.
This case illustrates how hybrid fraud schemes involving both traditional banking and cryptocurrency channels require coordinated investigative strategy and timely intervention to maximize recovery potential.