Case Study
FTI Technology Leads Cryptocurrency Loss of Funds Dispute
A leading cryptocurrency exchange was facing a lawsuit filed by a customer who sought damages for funds lost on the exchange. FTI Technology’s Blockchain & Digital Assets practice was selected to conduct an investigation into the matter and provide expert testimony to the court.
Situation
To determine the facts of what happened, including if funds were actually lost, how and other factors that would indicate the client’s possible legal liability in the matter, the client and their legal team required support from blockchain and digital assets experts. FTI Technology provided digital forensics capabilities, digital assets expertise, investigatory services and expert witness testimony to support the client in court.
Our Role
FTI Technology’s experts investigated the accuracy of the opposing party’s claims. In leading the investigation, the team provided the following:
- Expert forensic analysis of the opposing side’s transaction logs to determine exactly what steps the plaintiff took while interacting within his account with the exchange.
- Analysis for the court to demonstrate the client’s operational functionality within its technology stack. This included comparison to competitors, to verify that the client’s controls were at least as strong and sufficient as industry standard. This analysis found that the client had extra layers of the operational function above and beyond that of the competition.
- Investigation into the opposing side’s deposition testimony to match against transaction logs and verify the validity of the plaintiff’s testimony.
- Uncovered that the opposing side’s actions were responsible for causing the unauthorized access that led to the loss of funds.
Our Impact
FTI Technology’s engagement resulted in successfully defending the client’s access protocol and proving that the system worked as intended.
The analysis brought to light that the plaintiff, through his own actions, allowed unauthorized access to his funds, resulting in loss of funds.
FTI Technology’s forensic analysis of transaction logs, the opposing side’s computer forensics and analysis of competitor security levels provided the evidence needed to lead to a successful outcome for the client in the court.
FTI Technology’s engagement resulted in successfully defending the client’s access protocol and proving that the system worked as intended.
The analysis brought to light that the plaintiff, through his own actions, allowed unauthorized access to his funds, resulting in loss of funds.
FTI Technology’s forensic analysis of transaction logs, the opposing side’s computer forensics and analysis of competitor security levels provided the evidence needed to lead to a successful outcome for the client in the court.