Invested in a fake exchange or broker: what to do under Georgian law

What to do

1. Classification: fraud — taking another person’s property by deception with intent to appropriate it (“returns” and a “withdrawal tax” are elements of deception) (Criminal Code of Georgia, Art. 180); damage exceeding 10,000 lari is a large amount (a grave offence) (Criminal Code, Art. 177). A demand for a “tax” or “commission for withdrawal” is a sign of deception — stop paying. Check the licence: brokerage activity in Georgia without a licence from the National Bank of Georgia is prohibited — check the “broker” in the NBG register (Law of Georgia on Securities Market, Art. 20).
2. Where to report: if the call centre or the accounts are in Georgia, a crime begun, continued or completed in Georgia (a call centre in Tbilisi or Batumi) falls under the Criminal Code of Georgia, even if the victim is abroad (Criminal Code, Art. 4). Report to the police or prosecutor’s office of Georgia, including from abroad: a report of a crime may be written, oral or recorded in another way — the law does not require personal attendance (Criminal Procedure Code of Georgia, Art. 101); the applicant is entitled to a written certificate that the report was filed (Criminal Procedure Code, Art. 101); if the application for victim status is not granted within 48 hours — once to the superior prosecutor, then to court (Criminal Procedure Code, Art. 56).
3. If the victim is abroad: in parallel, report to the police of your own country. International cooperation in criminal matters is, as a rule, based on an international treaty (otherwise on an individual agreement or reciprocity) (Law of Georgia on International Cooperation in the Field of Criminal Law, Art. 2). Requests from a foreign state for legal assistance (questioning, banking data, searches in Georgia) are executed by the Prosecutor’s Office of Georgia (same law, Art. 11).
4. Money: ask the prosecutor to freeze accounts — on a motion from the prosecution, the court may arrest property (accounts) obtained by criminal means, so that it cannot be hidden or spent (Criminal Procedure Code, Art. 151). Identified recipients — a claim: a claim for compensation of harm from an intentional unlawful act is brought against the identified recipients or organisers (Civil Code, Art. 992); the limitation period is 3 years from when you learned of the harm or of who is obliged to compensate it (Civil Code, Art. 1008).
5. Where to apply: police or Prosecutor’s Office of Georgia; superior prosecutor; police of your own country; NBG licence register; court.
6. Evidence: the platform’s website and domain, screenshots of the account and “trades”, correspondence and calls, all transfers (IBAN, cards, crypto addresses, hashes).
7. Pitfalls: paying a “tax”, “commission” or “insurance” for withdrawal — the money will not be withdrawn; “lawyers” or “hackers” offering fund recovery for an advance payment — a second wave of the same fraud; waiting for the “manager” to reply instead of recording evidence and filing a report; reporting only in your own country and not informing Georgia, where the call centre operated.

Be sure to check

• this is fraud; a demand for payment to withdraw funds is a sign of deception — do not pay
• Georgian jurisdiction if the call centre or accounts are in Georgia; a report can be made in writing, including from abroad; victim status
• international legal assistance — through the police or prosecutor of your own country; requests are executed by the Prosecutor’s Office of Georgia
• freezing accounts through the prosecutor; claim against identified recipients, 3-year limitation period