TL;DR: I’ve been adversely affected by a court decision based on a “crypto expert” using Chainalysis who couldn’t trace 16 BTC that I can conclusively account for. The judge ruled that, on the balance of probabilities, I might still possess 16 BTC worth around £900K. Consequently, I’ve been ordered to pay a Legal Services Payment Order (LSPO) and Maintenance Pending Suit (MPS) that I cannot afford. I’m now out of funds to support my own legal defense and desperately need help.
Hello everyone,
I’m in a very difficult and overwhelming situation right now and could really use some guidance from this community.
Back in 2018, after a 16-year marriage, my ex-wife and I decided to separate. We privately agreed on a fair division of our assets:
• She would retain an Australian property we owned together.
• She would take over two reasonably profitable businesses.
• She would receive about one-third of our cryptocurrency holdings.
• I would retain the remaining cryptocurrency assets.
We implemented this agreement in August 2018. At that time, I didn’t have steady employment and was relying on my cryptocurrency investments to support myself. In March 2018, I made a significant
edu financial investment in the Celsius ICO. Honestly, I wasn’t sure how it would pan out and even tried to sell some of it at the end of 2018. Starting in 2019, I also sold portions to my new partner.
Fast forward to 2021, and unfortunately, my ex-wife had depleted her cryptocurrency assets, run her two businesses into the ground, and accumulated significant debts. She was also dealing with challenges in a new relationship. She approached me to borrow a Bitcoin, which I declined. I informed her that I didn’t have any of the original Bitcoin left, as I was using my assets to purchase a home with my partner for us and the children.
During this time, she sold the Australian property without my knowledge. She received the proceeds but led me to believe that she had no access to funds. Concerned for her well-being and that of our children, I assisted her financially by supporting her rent so she could move to a safer area.
By 2021, I had utilized much of my Celsius holdings to:
• Purchase a home.
• Pay taxes.
• Compensate my partner for her share of the Celsius investment.
• Support my ex-wife’s rent.
• Cover our children’s schooling expenses.
With my assets significantly reduced, I sought to settle matters amicably. I determined my tax obligations and made a lump-sum offer to my ex-wife of about £175K, which I believed was fair given our prior agreement and circumstances. She rejected the offer, stating it was insulting, and instead demanded around £2 million for housing and other needs—a figure that was, in my view, unrealistic.
Recently, I found myself without sufficient funds, having spent what I had on necessary expenses and support. During our legal proceedings, an expert report was commissioned to trace my cryptocurrency transactions using Chainalysis. Despite providing comprehensive records—including files from Binance, Coinbase, Celsius exports, Nano Ledger transactions, Exodus Wallet, Liquid Exchange, BTC-e, Bitstamp, and detailed transaction pools used for tax purposes—the expert couldn’t account for 16 BTC. This Bitcoin was either lost to a scam in January 2018 or used to purchase Celsius tokens in March 2018, which I can conclusively demonstrate.
Despite my extensive efforts to provide full and frank disclosure, the court has accused me of being evasive. They claim I haven’t provided enough information and allege that I have undisclosed wallets, pointing to large Bitcoin deposits in Coinbase without clear sources. They overlooked the fact that these were legitimate transactions that I can trace and verify.
At a recent LSPO/MPS hearing, I presented what I believed was a strong case demonstrating that I have no undisclosed assets. However, the narrative shifted, portraying me as uncooperative and dishonest. There were suggestions that I’m actively mining Bitcoin (which I’m not) and hiding significant assets.
As a result, the judge made a finding that, on the balance of probabilities, I possess 16 BTC worth approximately £900K and ordered me to:
• Pay a £70K Legal Services Payment Order (LSPO).
• Pay £2.8K per month in Maintenance Pending Suit (MPS).
I don’t earn enough to cover these amounts. I’ve only recently managed to establish a career, earning a modest income of £40K per year. For the past five years, I’ve relied on my cryptocurrency assets while trying to rebuild my life.
I’m at a loss for what to do next. My primary concern has always been to move forward, care for my children, and provide them with stability. It feels unjust that after we agreed on a financial settlement, and after I’ve supported her and our children extensively, I’m now facing these allegations and financial demands.
I’m reaching out to this community for advice, support, or guidance. Specifically:
• Has anyone faced a similar situation where cryptocurrency assets were misunderstood or misrepresented in legal proceedings?
• How did you navigate issues with Chainalysis reports or other blockchain tracing tools that failed to account for legitimate transactions?
• Are there any resources or organizations that can assist with legal defense in cases involving cryptocurrency disputes?
• What steps can I take to challenge the court’s findings and demonstrate full transparency?
I genuinely want to resolve this situation fairly and ensure the best for my children. Any help, insights, or shared experiences would be immensely appreciated.
Thank you for taking the time to read my story.
P.S. I had an account here since 2013 but lost access to it, so I’m posting from a new account. Apologies if this seems like a new user post, but I’m a long-time member of the community.
• Impact on My Ability to Defend Myself: With the court’s orders, I’m now out of funds to support my legal defense. I’m concerned about losing my home—the one I’ve worked hard to secure for my children’s stability.
• Concerns About Expert Report: The expert didn’t fully utilize the information I provided. Key transactions, such as those related to the Celsius token purchases and the scam where I lost Bitcoin, were not accurately traced or considered.
• Need for Expert Assistance: If anyone knows of reputable forensic accountants or legal experts specializing in cryptocurrency who could help me demonstrate the factual movements of my assets, please let me know.
Again, thank you for any assistance or guidance you can provide.
This situation highlights a glaring gap in how legal systems handle the complexities of cryptocurrency. The fact that a Chainalysis report—a tool often hailed as infallible—could lead to such a devastating judgment without fully accounting for your transactions is concerning. It’s a reminder that blockchain’s transparency is only as good as the interpretation of its data. Your case raises important questions: Should courts rely so heavily on these reports without deeper scrutiny, and how can individuals fairly defend themselves against technical misunderstandings? This could be a pivotal moment for setting better standards in crypto-related disputes.
