Cat Lawyer
Experience in the cryptocurrency industry: 5 years
– Director of the Taiwan Virtual Asset Anti-Money Laundering Association
– Representative expert at the public hearing on the necessity of a special law for virtual assets
Cat Lawyer specializes in handling litigation cases involving cryptocurrency fraud, cryptocurrency money laundering, and illegal fundraising in banking law. Since 2019, she has been handling multiple lawsuits related to the bankruptcy of cryptocurrency exchanges. She has also been invited to be a lecturer in courses on emerging technologies such as cryptocurrency, AI, and e-commerce.
How did you enter the cryptocurrency industry?
When it comes to the cryptocurrency industry, social media platforms are filled with various trading strategies that seem like everyone can get rich overnight. These strategies, such as those of trading experts who can accurately predict the trend of projects or Key Opinion Leaders (KOLs) who shout “get on board,” seem to be the only face of the cryptocurrency industry, making many outsiders intimidated and think that this is a distant and unattainable world.
However, are these “trading experts” really the whole picture of the cryptocurrency industry?
Actually, beneath these glamorous appearances, the cryptocurrency industry is more like ordinary office workers, just like “Cat Lawyer.” They, like you and me, work diligently in their jobs but also choose to enter the emerging field of cryptocurrency through investment and financial management, hoping to create additional passive income.
They may not have astonishing trading strategies or exceptional market intuition, but with rational analysis, cautious investment, and risk management, they can also find their place in the cryptocurrency industry.
When asked about how she entered the cryptocurrency industry, Cat Lawyer laughed and said that it all started with her career as a lawyer. “When the initial coin offering (ICO) was very popular, many clients came to me for legal advice. In order to provide professional advice, I started to delve into the research of cryptocurrencies. Unfortunately, I didn’t invest at that time and only started a year or two later.”
Unlike many people who entered through investment, Cat Lawyer came into contact with the cryptocurrency industry due to work requirements, allowing her to have a more rational observation of this field. As a professional lawyer, she examines the operational logic, potential risks, and regulatory issues behind cryptocurrencies with the rigor of a legal professional.
What is the most memorable experience you have had in the cryptocurrency industry?
As a cryptocurrency investor, Cat Lawyer admitted that the collapse of the FTX exchange had a great impact on her. “At that time, FTX was very popular and was hailed 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 stable large exchanges have the risk of collapsing. “This taught me a lesson that no matter how large or well-known an exchange is, asset allocation is always the most important.”
Cat Lawyer emphasizes the importance of diversifying risks and not putting all your eggs in one basket when investing in cryptocurrencies.
Because she has witnessed the prosperity and danger of the cryptocurrency industry, Cat Lawyer has decided to do her best to bring more positive impact to this emerging field. In her daily legal consultations, she has encountered numerous victims of scams, their tearful accusations, and the despair of losing their lifelong savings, which have deeply imprinted on her heart. Therefore, in addition to providing professional legal services, Cat Lawyer is also involved in anti-scam advocacy work.
In addition to the risks of exchanges, there have been constant reports of well-known exchanges closing or being investigated in the cryptocurrency industry, causing investors to be fearful. Cat Lawyer reminds that these exchanges may create a glamorous image through sponsoring large events or celebrity endorsements, but there may be illegal activities or risk control problems behind them. Therefore, investors must keep their eyes open and evaluate carefully.
What apps are installed on your phone?
Exchanges: ACE, PaiNet, BingX, Binance, Bybit, Crypto.com, Bitfinex, BitOasis, CoinList (public ICO platform), Gate.io, AAX, OKEX
NFT: OpenSea
Information sources: X, Telegram, Coinmarketcap
What is your current investment strategy?
After going through the market baptism, Cat Lawyer’s current investment strategy tends to be conservative. “At the beginning, I also came into contact with many small cryptocurrencies, but because of my busy work, I didn’t have much time to track information and found that small coins require quick entry and exit, and I often miss the opportunity.”
Therefore, Cat Lawyer’s investment portfolio mainly consists of mainstream cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), which have large market value, high liquidity, and relatively mature development. She believes that these cryptocurrencies, which have withstood the test of time, are relatively resistant to market downturns and have a clearer future development. Although she occasionally explores promising small coins, she strictly limits their proportion in the overall assets to avoid excessive exposure.
Based on her confidence in the long-term value of mainstream cryptocurrencies, Cat Lawyer adopts a long-term holding strategy. She does not pursue the excitement of short-term trading or frequently buy and sell due to short-term market fluctuations. This strategy helps her avoid emotional decision-making and reduces transaction costs and risks.
In addition, the lesson from the FTX incident has made her deeply aware of the importance of exchange risks. Therefore, she chooses to store assets in different exchanges, including domestic platforms that are legal and compliant, to reduce the risk of a single exchange closing or being hacked. She also emphasizes the importance of choosing secure exchanges and diversifying across multiple exchanges to further reduce risks.
What should beginners in the cryptocurrency industry pay attention to?
The cryptocurrency industry, a field full of innovation and opportunities, has attracted the attention of countless people and has also become a breeding ground for fraud. From fake exchanges, fake investment projects to gentle traps on dating apps, there is an endless stream of evolving and innovative fraud methods.
Cat Lawyer helplessly said that fraud is a serious problem in Taiwan. She receives 3-5 legal consultations on cryptocurrency scams almost every day, and in December last year, there was a shocking amount of fraud totaling NT$400 million in a single day.
“The fraud methods are constantly changing, making it difficult to guard against.” Cat Lawyer said that, according to her observations, the most common fraud method in Taiwan is “fake exchanges.”
Fraud groups set up fake websites that are extremely similar to well-known exchanges to deceive investors to deposit money. At first, they may allow investors to withdraw a small amount of money to gain trust. When a large amount of capital is invested, they will refuse withdrawals for various reasons, such as demanding high collateral or tax payments, or claiming that the account is frozen due to money laundering.
Cat Lawyer specifically warns that legitimate exchanges clearly state the transaction fees on their websites. If you are informed about the need to pay 10% to 30% in taxes 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 request “loan investments.” These are likely to be scam traps.
As regulations on cryptocurrencies become increasingly clear, Cat Lawyer suggests referring directly to the list of “Service Providers Who Have Completed Anti-Money Laundering Registration in Accordance with the VASP Registration Guidelines” on the website of the Financial Supervisory Commission. “The exchanges on these lists represent that they have legally established and completed relevant registration in Taiwan. For investors who are not familiar with the cryptocurrency industry, it is more reassuring to choose these exchanges at the beginning,” she said.
In addition to fake exchanges, dating scams are also a common fraud method in the cryptocurrency industry. Fraud groups establish emotional relationships with victims through dating apps or social media platforms and then lure them into investing in cryptocurrencies through various reasons.
“Many victims even video call with the fraud groups and think they are real just by seeing their appearance. But now, with advanced AI technology, the video footage could also be fake,” Cat Lawyer said.
What should you do if you are unfortunately scammed?
The cryptocurrency industry offers many opportunities to make money, but it also comes with great risks, especially scams that are rampant. Based on her own and her clients’ real experiences, Cat Lawyer provides some suggestions.
Suggestion 1: Stop investing more capital immediately
This is the first step in cutting losses and the most important one. When you realize that you may be scammed, you should firmly refuse to invest more capital for any reason given by the other party, such as paying taxes, collateral, or account unfreezing fees.
Cat Lawyer emphasizes, “Every penny you can save from being scammed counts!” Many victims, after discovering that they have been scammed, still hold onto a glimmer of hope and continue to invest more capital to “break even.” The result is often falling deeper into the trap and suffering even greater losses.
Suggestion 2: Preserve all relevant evidence completely
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 fraud group: This includes chat records from all communication platforms (such as LINE, Telegram, WeChat, etc.), email correspondence, etc. Even if the content of the conversation seems irrelevant, it may become crucial evidence.
Transaction records: This includes records of deposits and withdrawals, such as bank transfer details, cryptocurrency transaction records (including transaction time, amount, wallet addresses of the transaction counterpart), etc.
Screenshots of fraudulent websites or platforms: Capture and save as many pages as possible from fraudulent websites or platforms, especially those displaying investment amounts, returns, and withdrawal rules.
Other relevant documents: For example, contracts, promotional materials, identification documents (even if they are fake) provided by the fraud group. Any documents related to the fraud should be saved.
Cat Lawyer specifically reminds that some victims may delete conversation records with the fraud group due to embarrassment or anger, which will greatly hinder subsequent legal claims. Therefore, it is important to remain calm and preserve all evidence completely.
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 a plan of action.
Cat Lawyer mentioned that even if the fraud group remains at large, they ultimately need to receive funds through personal accounts. Therefore, even if it is not possible to directly recover the defrauded funds from the fraud group, there is a chance to hold the owners of these personal accounts responsible through legal means and seek compensation for the losses.
Suggestion 4: Report to the police
Although some people may think that reporting to the police is useless, it can actually provide the police with more information to consolidate and investigate, thereby arresting more members of the fraud group.
Finally, Cat Lawyer’s most important advice to cryptocurrency beginners is to “act within your means and do proper asset allocation.” She emphasizes that investing in cryptocurrencies always involves risks, and there is no investment that guarantees a profit without any loss. Therefore, it is essential to carefully evaluate one’s risk tolerance before investing and not to invest more than one can afford.
“The purpose of investment is to improve life, not to put oneself under greater pressure,” Cat Lawyer said. “If investing in a certain project keeps you up at night, then even if it may increase 100 times in the future, it is not suitable for you.”
She also encourages investors to discuss their investment plans with family and friends, especially for the younger generation to help their elders identify scam information. “Many seniors are afraid to tell their children after being scammed, resulting in deeper entrapment. If a good communication channel can be established within the family, tragedies can be reduced.”