Failures of international law enforcement in cryptocurrency fraud cases: fragmentation of investigations, loss of victims, and the limits of asset recovery

This report analyzes the role of offshore jurisdictions, nominee directors, straw persons, and corporate shells in the structure of modern cryptocurrency-related crimes. It examines the mechanisms by which blockchain infrastructure is combined with classical corporate concealment tools, including shell companies, nominee arrangements, and offshore banking and payment circuits. Particular attention is paid to international investigative practice demonstrating that the combination of “blockchain + offshore + nominee” creates the most resilient and least accessible models of financial crime for law enforcement. The consequences for investigations, asset recovery, and beneficiary liability are also analyzed.