Cat Lawyer
Experience in the cryptocurrency industry: 5 years
– Director of the Taiwan Virtual Asset Anti-Money Laundering Association
– Expert representative at the public hearing on the necessity of specialized legislation for virtual assets
Cat Lawyer specializes in handling lawsuits related to cryptocurrency fraud, money laundering, and illegal fundraising in the banking industry. Since 2019, she has handled multiple lawsuits involving the bankruptcy of cryptocurrency exchanges. She has also been invited to be a lecturer for courses on cryptocurrency, AI, e-commerce, and other emerging technologies in the field of law.
How did she get involved in the cryptocurrency industry?
When it comes to the cryptocurrency industry, social media platforms are filled with various trading strategies that seem magical, as if anyone can get rich overnight. These strategies include following expert traders who can predict project trends accurately and enthusiastically recommend investing, making it seem like these “gurus” are the only face of the cryptocurrency industry. This has intimidated many outsiders, making them think that this is an unattainable and unreachable world.
However, are these “gurus” really representative of the entire cryptocurrency industry?
In fact, behind these glamorous appearances, the cryptocurrency industry is made up of ordinary working professionals, just like Cat Lawyer. They work diligently in their jobs like you and me, but in addition to their regular work, they choose to enter the emerging field of cryptocurrency to create additional passive income through investment and financial management.
They may not have astonishing trading strategies or exceptional market instincts, but with rational analysis, cautious investment, and risk management, they can also find their place in the cryptocurrency industry.
When asked how she entered the cryptocurrency industry, Cat Lawyer smiled and said that it all started from her profession as a lawyer. “When the initial coin offering (ICO) was booming, many clients came to consult me on legal issues related to it. In order to provide professional advice, I started to delve into the study of cryptocurrencies. Unfortunately, I didn’t invest at that time and only started a year or two later.”
Unlike many people who enter the industry through investment, Cat Lawyer came into contact with the cryptocurrency industry due to work requirements, which allowed her to observe the field more rationally. As a professional lawyer, she examines the operational logic, potential risks, and regulatory issues behind cryptocurrencies with legal rigor.
What is the most memorable experience in the cryptocurrency industry?
As a cryptocurrency investor, Cat Lawyer admits that the collapse of FTX exchange had a great impact on her. “At that time, FTX was highly acclaimed as the second largest exchange in the world. Everyone had confidence in it, including many ordinary traders. So when it suddenly collapsed, many people’s funds were stuck, and I was one of them.”
This incident made her deeply realize that even seemingly solid large exchanges carry the risk of closure. “This taught me a lesson that no matter how large or reputable an exchange is, asset allocation is always the most important aspect.”
Cat Lawyer emphasizes the importance of risk diversification and advises against putting all eggs in one basket when investing in cryptocurrencies.
Having witnessed both the prosperity and dangers of the cryptocurrency industry, Cat Lawyer decided to contribute to this emerging field as much as she could. In her daily legal consultations, she has encountered numerous victims of fraud who tearfully express their grievances and the despair of losing their life savings. Therefore, in addition to providing professional legal services, Cat Lawyer is also involved in anti-fraud advocacy work.
Apart from exchange risks, there have been frequent reports of well-known exchanges closing down or being investigated in the cryptocurrency industry, causing anxiety among investors. Cat Lawyer reminds investors to be vigilant as these exchanges may create a glamorous image through sponsoring large events or celebrity endorsements, but there may be illegal activities or risk management issues behind them. Therefore, investors must keep their eyes open and evaluate carefully.
What apps does she have on her phone?
Exchanges: ACE, Pi Network, BingX, Binance, Bybit, Crypto.com, Bitfinex, BitOasis, CoinList (public ICO platform), Gate.io, AAX, OKEx
NFT: OpenSea
Information sources: X, Telegram, Coinmarketcap
What is her current investment strategy?
After experiencing the baptism of the market, Cat Lawyer’s current investment strategy leans towards being conservative. “At the beginning, I also invested in many small coins, but due to busy work, I didn’t have much time to track information. I realized that small coins require quick entry and exit, and I often missed the timing.”
Therefore, Cat Lawyer’s investment portfolio mainly consists of mainstream cryptocurrencies with large market capitalization, high liquidity, and relatively mature development, such as Bitcoin (BTC) and Ethereum (ETH). She believes that these cryptocurrencies have withstood the test of time, are relatively resistant to price drops, and have a clearer future development path. Although she occasionally explores potential small coins, she strictly limits their proportion in the overall assets to avoid overexposure.
Based on her confidence in the long-term value of mainstream cryptocurrencies, Cat Lawyer adopts a long-term holding strategy. She does not pursue short-term trading excitement and does not frequently buy and sell due to short-term market fluctuations. This strategy helps her avoid emotional decision-making, reduce trading costs, and mitigate risks.
In addition, the lesson from the FTX incident made her realize the importance of exchange risks. Therefore, she chooses to diversify her assets across different exchanges, including domestically legal and compliant platforms, to reduce the risk of a single exchange closing down or being hacked. She also emphasizes the importance of choosing secure exchanges and further diversifying across multiple exchanges to mitigate risks.
What should beginners in the cryptocurrency industry pay attention to?
The cryptocurrency industry, with its innovations and opportunities, has attracted numerous people’s attention, but it has also become a breeding ground for scam groups. From fake exchanges and investment projects to romance scams on dating apps, the methods used by scammers are constantly evolving and innovating.
Cat Lawyer regretfully states that Taiwan has a serious problem with scams, and she receives 3 to 5 legal consultations regarding cryptocurrency scams almost every day. In December last year, there was even a shocking one-day scam amounting to NT$400 million.
“Nowadays, the scam methods are ever-changing and it is difficult to guard against them,” says Cat Lawyer. According to her observations, the most common scam method in Taiwan is the “fake exchange.”
Scam groups set up fake websites that are extremely similar to well-known exchanges to deceive investors into depositing funds. Initially, they may allow investors to make small withdrawals to gain trust. However, when a large amount of funds is invested, they will refuse withdrawals for various reasons, such as demanding high guarantee deposits or taxes, or claiming that the account is frozen due to money laundering.
Cat Lawyer specifically warns that legitimate exchange websites will clearly state the fee rates, so if you are informed of a 10% to 30% tax payment only during the withdrawal process, it is almost certain to be a scam.
In addition, be cautious when encountering investment opportunities that claim to “guarantee profits,” offer “high returns,” or require “loan investments.” These are likely to be traps for scams.
As cryptocurrency regulations become clearer, Cat Lawyer recommends referring directly to the list of “VASP registration completed under the Anti-Money Laundering Act” published on the website of the Financial Supervisory Commission. “The exchanges listed on these lists represent that they have legally established themselves in Taiwan and completed relevant registrations. For investors who are not familiar with the cryptocurrency industry, choosing these exchanges at the beginning will bring more peace of mind,” she says.
In addition to fake exchanges, romance scams are also common in the cryptocurrency industry. Scam groups establish emotional relationships with victims through dating apps or social media platforms, and then entice them to invest in cryptocurrencies using various reasons.
“Many victims even have video calls with scam groups and believe they are real just by seeing their appearance. However, with the advancement of AI technology, video images can also be fake,” says Cat Lawyer.
What to do if unfortunately scammed?
The cryptocurrency industry offers many opportunities to make money, but it also comes with great risks, especially scams. Based on her own experience and that of her clients, Cat Lawyer provides some suggestions.
Suggestion 1: Immediately stop investing more funds.
This is the first step in cutting losses and the most important one. When you realize that you may have been scammed, you should firmly refuse any requests from the other party to continue investing funds, such as paying taxes, guarantee deposits, or account unfreezing fees.
Cat Lawyer emphasizes, “Every dollar you can save from being scammed is a dollar saved!” Many victims, after discovering they have been scammed, still hold onto a glimmer of hope and continue to invest more funds to “recover their losses.” However, this often leads to deeper entrenchment and even greater losses.
Suggestion 2: Preserve all relevant evidence.
Collect and properly preserve all evidence related to the scam, as it is crucial for seeking legal assistance in the future.
Conversation records with the scam group: This includes chat records from all communication platforms (such as LINE, Telegram, WeChat, etc.) and email exchanges. Even if the conversation seems irrelevant, it may become crucial evidence.
Transaction records: This includes all deposit and withdrawal records, such as bank transfer statements and cryptocurrency transaction records (including transaction time, amount, and wallet addresses of the parties involved).
Screenshots of scam websites or platforms: It is important to capture screenshots of all pages of the scam website or platform, especially those showing investment amounts, returns, and withdrawal rules.
Other relevant documents: For example, contracts, promotional materials, and identification documents (even if they are forged) provided by the scam group. Any documents related to the scam should be saved.
Cat Lawyer specifically warns that some victims may delete their conversation records with the scam group due to shame or anger. This will greatly hinder any future legal claims. Therefore, it is crucial to remain calm and preserve all evidence.
Suggestion 3: Seek professional legal assistance.
Cryptocurrency scam cases often involve complex legal issues and technical details. Therefore, it is recommended to consult a professional lawyer as soon as possible to assess the case and develop the next course of action.
Cat Lawyer mentioned that even if the scam group escapes legal consequences, they ultimately need people to receive the funds. Therefore, even if it is not possible to directly recover the funds from the scam group, there is a chance to hold the owners of these accounts responsible through legal means and demand compensation for the losses.
Suggestion 4: Report to the police.
Although some people may think that reporting to the police is futile, it can actually provide the police with more information for investigation and the arrest of more members of the scam group.
Lastly, Cat Lawyer’s most important advice for beginners in the cryptocurrency industry is:
“Know your limits and manage your assets.” She emphasizes that investing in cryptocurrencies always carries risks, and there is no investment that guarantees profits without losses. Therefore, before investing, it is essential to carefully evaluate your risk tolerance and not invest more than you can afford.
“The purpose of investment is to improve your life, not to put yourself under greater pressure,” says Cat Lawyer. “If investing in a particular project keeps you awake at night, even if it may increase by 100 times in the future, it is not suitable for you.”
She also encourages investors to discuss their investment plans with their family and friends, especially the younger generation who can help the older generation identify fraudulent information. “Many victims who have been scammed don’t dare to tell their children, and as a result, their situation worsens. If good communication channels can be established within the family, tragedies can be reduced.”