Spotting Crypto Fraud and Acting Safely with Smart Contracts, Fireside chat | ETHSofia 2025

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[music] [music] Great. So I see many of you we talked outside about the legal issues. Super. So let's go on. I love law because it's not about the journey to the moon. It's about nowadays and long-term strategy. So it's very important and uh I want to speak with my dear friend colleague Constantine uh the about the crypto fraud uh real cases application of all the stuff nowadays how it going on and about the smart contracts in the real

business. So tell please uh today unfortunately many people they are facing crypto fraud. They're losing a lot of money but how it is look like in reality what kind of criminal cases do you have and what kind of crypto fraud did you face personally as a lawyer? >> Thank you Petro. So yeah, so my name is Constantine and I have been doing this business for 10 years especially in the financial sector and I'm doing that also into the crypto sector. So I think I should start with the conclusion don't become a victim of a crypto fraud. You have less than 1% chance to uh to recover your assets. So that's the

conclusion. What is happening? Let's say most of the cases. So I can give three examples for my my practice. Uh a hack a wallet hack for example your bitcoin ethereum they went somewhere. Uh usually the what we call the investment scam someone tells you you can do make a lot of money but the payment investment should be done into a cryptocurrency. And I have a very interesting I'm not sure that a lot of people know. I have a a case of payment with fake USDT based on smart contract.

So uh for the fake USDT it looks from the technical point of view I'm not a technician but what I understand it's a smart contract where you create in a way a USDT which looks like a real USDT but has zero value when it comes to a on exchange platform. So what can you do when you uh when you're a victim of a scam knowing that you can trace the transaction but you don't know the exact identity of the person uh who receive your transaction.

So this is the most difficult part because you need public institution to assist you for the let's call it the disclosure procedure of the identity and they can assist you only when you trace a transaction to an on exchange wallet. That means when it is outside the exchange, nobody knows who is the keys. When it's on uh into a an exchanges uh the exchange knows the KYC the identity and needs to disclose it to the public uh usually to the criminal uh

public institution. Here all this procedure takes a lot of time needs to be prepared and you need depending on the authority you need to make them understand how all is working. They need to check in order to ask the relevant exchange for this information. When you receive this information, this is now at least you know who get the benefit of uh uh of the transaction of the cryptocurrency.

But then you need to prove that he's really into the scheme and not a middleman who actually is just uh performing a normal transaction thinking it's a normal transaction. And of course in each case they say I have nothing to do and he tries to make a story why he received this from from this friends a lot of stories etc. But you need also to challenge all these stories and at the end you need um uh to to to to freeze to freeze the cryptocurrency if it is still into his wallet or if it is transferred

to another wallet. So technically it is possible now more and more uh to be able to freeze wallet when they are on exchange. Of course it is uh the same kind of procedure than to freeze a bank accounts because uh to understand correctly from everything I'm not a technical expert but what I understand is that when it is off exchange when it is off exchange uh the crypto is like uh paper money when it is on exchange it became something like digital money and then in a bank account and then you know who is behind >> [cough and clears throat]

>> And uh so it is possible to freeze on exchange uh uh to to freeze a wallet on exchange and after that do the civil or criminal procedures uh to recover the stolen cryptocurrency. But by saying all this I say it very generally because I can now very very quickly enter into a more detail and more complex because you have let's say procedure as much as jurisdictions in the world let's talk about Europe you have 27 country 27 different jurisdiction and when it is international usually the

cryptocurrency scams are international You need to play with each jurisdiction differently depending on the fact you may need to go into one jurisdiction, another jurisdiction, one for the discovery, the other for the freezing, the third for any kind of asset recovery and becomes very very complicated. The last point I want to point out is that unfortunately for us in the continental law system, which means most of the continental European system, we don't have what the Anglo-Saxon law has, which I found it very good and very efficient. This is pre-litigation disclosure. Why? Uh if you are in an

Anglo-Saxon word, you may by yourself try to make a disclosure procedure against uh an exchange without the need and assistance of the public authority and obtain such information and prepare for a freezing after that and prepare the whole procedure of uh asset recovery. However, in our continental jurisdiction, most of them, but especially for Bulgaria, uh we don't have pre-litigation disclosure procedure. If you want a civil disclosure procedure, you need to start a litigation. And when you have a cryptocurrency transaction, to start a litigation, the first and most uh important

uh thing is to know who you going to litigate. But you want to understand who you are going to litigate. But in order to litigate, you need to know it. So how you going to do that? And you are obliged to pass through the public authority which of course is very tough and complicated. It takes time and the whole public authority. I'm not entering into the detail. It depends a lot of the local institution people understanding the crypto etc etc. uh which uh which also uh makes things harder and harder to uh to uh to to resolve. And of public authority most of the time there

is coordination in European Union but when we are talking about even millions they are not really ready really really very excited to make a lot and fast procedure. Usually they have um they are assigned to talk about billions. They are assigned to talk about big company very important social impact of a a given uh cryptocurrency fraud. For smaller without a social impact they will not be very very fast. And here if they they are not very fast of course you are losing uh by losing time you are losing a lot a lot of chances to recover and to reach uh the identity the the

freezing and after that the recovery of crypto assets. So what can change right now and there is a a light in the tunnel is that there will be far more transparency now with the mick. That regulation would allow more liability, transparency, and we will be it would be easier to know against whom you're going to go. The crypto exchange what information they going to provide and if they failed the crypto exchange is failing to do the job is allowing a fraudster to use their infrastructure for money laundering and crypto fraud.

Then you can even go and try to litigate the crypto exchange itself because he allowed the fraud. And even if you are a third party, the victim company, whoever it is, the crypto exchange would have far far more liability right now for allowing uh illegal moneyaundering transaction uh happening into their hot wallet and into their uh internal system. So I think for the asset recovery uh and for the people victim of such kind of fraud I think the future may be brighter even though there will be less privacy that's another

thing we were talking etc but when there are less privacy they may be more difficult uh to get the uh bad players uh when there is more privacy more um public information more accountability It makes more easy for us as set recovery to go and to find someone liable on the chain uh of each kind of scam and transaction and that allows us to do better job and to have uh an efficient recovery which not it doesn't mean 100% but even if you get 10 50% you recover usually this is a huge huge

success in such kind of cases And so now we going to switch uh to to talk with pro about the smart contracts and are the smart contract a way for more uh security of the transaction and to avoid potentially such kind of fraudulent behavior on the blockchains. >> Thank you very much. Thank you for your speech. Actually I think that smart contract is a tool that can help us to avoid all these financial crimes. If to speak from the legal point of view, what is smart contract? Smart contract is a computer code that executes automatically the terms of any kind of agreement. If to see more precisely to

this code, so this is the m the mathematical functions with the numbers and the logic is quite easy. If yes, no. So uh the same works same scenario works in traditional paper documents. So we have in in a agreement we have information about the parties about the object of the agreement uh rights and obligations cost of the services or or the goods time when we have to execute it and fines if we breach this contract.

So it works the same in a smart contract. So the same if yes no the the the main in thing in smart contract that there is no room for free interpretation of its terms. So if according to the smart contract we are buying for example NFT that's prescribed to be white and we make this transaction. So we cannot say and you send me for example I don't know black uh NFT I cannot say oh I saw that this agreement was about this kind of NFT maybe if you look at this sites with the color it will be white no it doesn't work so so in with a smart contract it work automatically and then after if you are not agree of course you can go and

try to defend yourself self in the court but again this is a theory but in practice how does it work and how it can enhance uh purchaser experience. Now I'm working as a lawyer uh in one project they're building a classical marketplace for buying uh used cars using the smart contract. So how does it work when we based now in Bulgaria and we want to buy the car I don't know in Spain for example. So but this road is very very long and we have to find a lot of people first to find the car then to check somehow its technical side if it is okay can it move and so on then to find someone who will do this

job then insurance transportation lawyer who will go to the local authorities and take uh registration number but it's it takes a lot of time uh and we have to find all these service providers and if we not in this sphere. It will be very difficult to find someone whom we can trust and of course it will be much more easier to find some intermediary some company who will do it like in one box solution. But in this case with the help of smart contract you can choose uh the option of the insurance of the transportation and so on just with the price that you like and then you make it all in one smart contract. But the

question why it is secure for you again so where is the trust let's come back to the very beginning the essence of the crypto why it's uh were created in white paper of bitcoin and the answer is there first uh we have to protect the sellers so when we give the goods we have to receive money first not to go to the courts and say that this good is not uh is not that we agreed before and second it's the essence peer-to-peer. So we as each each service provider is this chain actually is a note from technical side and if to come back to the essence so each node working for the chain so if

chain feels itself good trusty and everything goes well we're acting in a good phase so you as a node also will be in a good position everything will be good with you so let's come back to this uh marketplace global of the chain when you as the service provider definitely you uh give the services and maybe something goes wrong and in the end of the day we can go to the court but again if the if it was your problem if you breach the contract your obligation so automatically with the help of the smart contract immediately you will lose money uh that can be staked. So again we are we are avoiding all these long procedures going to the court explaining who right or wrong and so on so on. So

smart contract helps to do it much better. By the way uh last December uh international trade organization and uh European authorities in its data regulation they uh accepted a smart contracts they recognized it. What does it mean? So it's a legal base now to use this perfect tool in any kind of web to business. So it enhance first of all speed uh of the any transaction security uh and uh reducing the cost because we avoid intermediaries. But again the one more how we can be much more trusty using the smart contract smart contract

due to its DT technology base its transparency. uh this smart contract can be tested by many other people's. By the way, when you're even not a lawyer and you're reading a classical paper agreement, not everybody understand what what is exactly about. Uh even the terms of use, people never read it, but it's uh legally very important document. But this smart contract is open. Everybody can check it. And also due to this transparency and DT you can order to specific companies who do a security audit, legal audit of this smart contract and then you can say that yes we uh it is reliable we can use it. So I

think smart contracts is the next step not for a future for the moon crypto it's next step for the web too and we have to use this perfect tool already right now. Okay. So maybe if anybody has any question we can discuss about the topics >> actually I have one question. >> Uh can you please tell the guidance for the victims who faced fraud? So step by step what they have to do how they have to uh and what evidences they have to collect in the very beginning before going to the lawyer or maybe someone else. So when it is about a crypto fraud, of course they need to to to to

gather the evidence about their transaction. After that we need to make a cryptocurrency uh crypto tracing report to identify any exchange that we can ask for the identity. And after that, if you are into the continental system, for example, Bulgaria, we need to go to the uh to the police or the the cyber security uh department here, cyber crime and ask them uh to to go to the exchange and to get information. The major problem is that the exchange we never know who is exactly the exchange.

So uh yes the according to the current system it's each exchange should have a kind of [music] VASP in a given country. Uh I'm talking about Europe but it's very messy. It's not recogni uh recognized everywhere and even if you don't get a VASP you can still make transaction and the frost are usually trying to identify uh crypto exchanges uh regulated somewhere into vanatu some I don't know whatever jurisdiction when uh frankly it's a small island and nothing happens uh of course on that on that islands in ter of potential asset

recovery and when uh they approach for any kind of information they don't know even the police doesn't know who to approach who to ask so that's I hope will will change right now because right now if technically it's possible to avoid uh the uh any services of an exchange uh with an IP outside the European Union and I don't know how it's going be technical but if you are using always as a European citizen or company uh European establish exchange uh that's uh that would be uh very

helpful and with that exchange after that uh unfortunately if the exchange on the other side happens to be outside the European Union and again someone else that would make again a huge problems for uh for the recovery but the fact that there is in Europe base may give more liability. uh there is a huge I want to add if you allow me there is a huge issue now in the legal society it's quite possible that we all here and we too we somehow interconnected through one two four five 10 uh wallets crypto it's quite possible and it can be

traceable so the question is uh if we all who are interconnected and some of us uh is a crimer and he did something very bad does it mean that everybody who are in this chain also uh a part of this fraud scheme or criminal activity. >> This is exactly I said so that doesn't mean and usually you need to ask them why he received such kind of crypto and he needs and he's giving a story he explains I received this because it's a friend of mine etc. So depending of the story, sometimes the story is very funny and it's obvious that he's into the whole chain and asked or paid in order

to give assistance from his wallets uh on exchange wallet. He he paid but sometimes yes the story could be true. He bought it depends of the quantity of course he made some fake contract or some contract and he tries to explain that it's a true story and there is a true service delivery of good etc. But th this is um this is going to be even with the with the mikah a huge problem and uh there it depends on the story of uh of the person. There is an issue that in the end of the day this litigation will be

solved by judge or prosecutor somewhere else who are actually not familiar with the crypto. They don't know what is DT how do it works. So it's something amazing for them. So as as for me the what is very important in such cases is data analysis. So it solves a lot of problems. data analysis based on the specific requirements and the specific activity. Not only why you received this money but how many times did you interacted, why you interacted, the amount of the assets that you sent, how does how was it connected in time uh perspective with the first fraudulent uh transaction. Actually all these requirements now they are prescribed in uh F recommendations. So it is quite

obvious the question is to make this report data analysis report much more obvious for for everybody who are not familiar but who make a final decision how do you think can it solve this problem in such way >> uh first I think that into the legal community it's very important because the data analysis I understand that like the crypto tracing data analysis this is very technical and uh how a judge or a public prosecutor will understand it. So this kind of education about how works a given system especially when you uh you have uh judges with uh who are at the

top of the career and they don't want to to get into the crypto for them it's too much for them. So you need a new generation preparation of a new generation of public prosecutor, judges, police officer in each country in order for them to be able and familiar with the technology in order to understand this crypto uh reports or uh and that the specialists who are presenting this report or work into their department are able to explain them. So that's a process that I know that in the United States it's uh quite uh they are very good but here into especially Eastern European

countries that process will take maybe longer compared to the United States and the Anglo-Saxon word that invented by the way the crypto industry. Sorry, >> please. >> Thank you. >> Thank you. That was really interesting first of all. So, thank you very much. Um, your very cool presentation. I have one question on the data analytics side. To what extent can you use these data analytics tracing tools like chain analysis and elliptic in these sorts of cases? Are they do judges accept them?

Are they used? Are they too expensive for retail? Because I know they're pretty expensive. What role do they play? >> Uh look, all these reports are uh are doing according to the specific recommendations and today there is no official recommendations. There is no guidance. But uh in Europe especially there is a principle of a good face. uh when a company who is doing this report checking all possible scenarios that uh can be applicable to specific uh transaction. So if the company well known has a good experience or has have a good cases and any DT is transparent we can do onchain analysis by ourselves

just using Azer scan whatever but um these reports they can make it not like numbers but a a picture you can see this interconnections with the wallets and uh there are many re not recommendations many uh approaches red lines, white r lines, green and so on. So it just helps us. It's a tool. It's a muscle. But in the end of the day, judge will consider if these uh interconnections are worse to consider them as elicit.

>> So if I uh just want to add uh so you're talking about public institution. So to the best of my knowledge, I think that even the Bulgarian cyber crime are using tools like chain analysis. This is to the best of my knowledge. But for example, litigation in Bulgaria. That's different from the Anglo-Saxon the expertise because this is an expertise. There could be a lot of expertise used as a factual document etc. that shows some facts uh which are of importance for the trial. Such expertise should be done by people who are listed in a in a given register in Bulgaria. How many

people have the expertise and have been listed and have an interest into doing such a kind of expertise? Actually I'm not sure there is any or if there is there is one or two and I'm not sure they have really the real technical experience and why it is different because in the acal section you have the right to bring your own experts to the best of my knowledge uh in the here you don't have the right in the civil court to bring your own expertise the expertise should be done by an official um yeah which makes uh uh which could make a litigation a problem of expertise and a pro problem for the judge to

understand what is happening and what are the facts. That's a really really interesting um expert witness >> because it touches on something which is anywhere where there's money to be made in crypto you have fraud and an area that I see increasingly is the so-called experts on analytics who are actually just fraudsters. They don't actually do any analytics and you even see it in the Roman storm trial in the US. they brought their own witness who was an expert who was an idiot. Like a 14-year-old kid, you know, could find out what what they didn't know. And so, it's quite it's up and it's has an upside and a downside. I like this idea that there's a register of experts and

only they can come. You just have to find the expert in the first place as opposed to bring your own because right now the whole marketplace is flooded with thousands of alleged AI analytics companies which there's nothing going on there. it's empty and they're just like just trying to get money. >> Yeah. So basically this is uh the general conception of the continental law which is different from the Anglo-Saxon here uh and for example there is and what makes my job very difficult when there is a crime uh like a scam a fraud let's call it a fraud and money laundering crime under the

continental system Bulgarian there is a monopoly of the public institution to investigate it. You have no way you as a private in you may have a lot of money whatever it is but you have no way to investigate and even you may make your own investigation it means nothing because you cannot use it into the court proceedings uh you you you have your own investigation still nobody cares about it the police should make the investigation etc show it to the public prosecutor they are in charge And at the end of the day all the information you uh you got you may try to make a litigation civil litigation

but the concept in our uh in our jurisdiction is that the civil should follow the criminal. That means they have to start a criminal accusation act against the fraudster. And within this procedure, you can start your civil material claim for the damages blah blah blah blah. And as everybody could understand, it happens very few times that you got the identity of the scammer, the people, the freezing, the state should freeze also the said the state could do whatever they want. time after time and make an accusation. If they have not frozen the assets for you

as a victim, why do you care? They're gonna go not to jail if there are no more assets and everything is a kind of monopoly by the public institution. Whereas what I like into the Anglo-Saxon word is that you can do by yourself. You need money, of course, a lot of money. But you can do such kind of procedure by yourself to have a security on the freezing. Once again, if I want to freeze an asset, I need to freeze it just and just after that start a civil litigation against the fraudster. I cannot just freeze an asset without starting a litigation.

How do I understand who is the fraudster? I need to go to the judge to say look he is if I start want to freeze it against Binance I say to the judge it's Binance maybe I will got uh freezing but after that I need to litigate against Binance why why I don't know if Binance have just to receive by myself the identity of the frost that doesn't work and uh that's the whole uh difficulty and we can put more uh specific European difficulty This is that the police investigation into such kind of international they are they need coordination. It takes time because you have 27 states. It takes

time and there are some as I said priorities in they have their own priorities and if it is not a very important very important forecast for case we're talking just about million it will not be within the priorities. answering to your questions it's I can talk hours about this it's a really huge huge problem that there is no methodology how to make this onchain analysis really but let's try to be out of the technology and this is the same financial crimes uh transactions between classical bank accounts of different kind okay assets is money in this case so there are lots of uh cases already

existing and they are putting into the base of any kind of litigation and there is a specific economical accountant expertise. So if you have any kind of transaction and you you have some deposit please explain why you received it. If you cannot explain it so this transaction is uh unproved that's why we can consider that it is illicit. So the only actually problem or maybe the difference with a crypto fraud that there are can can be exist hundreds thousands of uh intermediaries wallets who are splitting the essential the basic stolen assets into smallest piece first and second we cannot uh say that

we cannot mark that asset that were stolen. So this is the the only problem but again if to see to this picture globally as a picture I try in all my cases I'll try to show a picture that can be obvious for everyone who are even not familiar with DT and then when can people see it okay there are different um approach but again everything already exist classical accountant and economic uh expertise So do you have any question?

>> By the way, by the way, the same uh problem exist with the smart contracts. So there is also no uh court cases now. So all now I found only two cases related to crypto. One in Singapore uh the company who helped to make some investment and the question is what exactly this investment was about? Was it about just crypto asset or something but it was three years ago but now everybody understand what it is exactly crypto asset and another one is another about the bitcoin when it was the obligation to make a transaction wasn't fulfilled so courts decided that the damage was the sum of damage can shall be accounted at the moment when the

obligation to transa to uh send this asset wasn't fulfilled. So this is the only cases about crypto now existing in uh Europe. So just imagine what will be the eyes of the judge when they see smart contract is a huge code and some obligations and some arguing between parties. This is the question but again it's a it's we need some time. Now in USA there is a they are making all these cases about the crypto crypto fraud defy protocols what it is exactly defy uh now there is a huge case about the market makers so this is a very painful topic uh if to say from the legal

retrospective market making the only thing that can be done is market making just to uh execute the order not to push down or up the price and then you have to notify local authorities that you have done. This is the only market making. But in crypto unfortunately it works in a little bit different way. But why if everybody understand it why exchanges still requires uh market market making support before listing but I I think time needs to get to it. >> Yeah. I think that the small contract should that be regulated on a kind of European level in order to be useful in my opinion. Uh and for people to have a

normal business have more confidence uh to have a kind of clear definition what kind of technical service provider should be done etc. This is my opinion by the way why crypto will exist forever. It's it's obvious for me it's celebrity. So um anything any activity that you're doing with the crypto assets can be traceable and someone who has just good mind and some good practice he can analyze your activity understand what exactly is happening. So you told something very perfect. So classic dollar is the tool that are not controlled by anyone. crypto can be. So

it creates huge opportunities for the governments but also from other side from good side of the coin it creates a good uh opportunities for the investors for the business for the transparency enhancing of the uh interaction between seller and buyer. So we can and we shall use this instrument in our activity. >> I I sorry I cannot help myself when you say you know the smart contracts should be regulated by governments. I think you kind of completely missed the whole point of building these ecosystems. You know, they were actually all built in order to avoid governmental control and and create trustless systems where you don't need any government uh to meddle

with it. So, I think you're completely on the other side. No spectrum on that one. >> When I'm talking a regulation, it's not about a regulation like a license. It's not about when I say to to give a clear definition what it is, how it should be functioning in order to qualify as a smart contract and to give also a kind of technical details uh details of how uh there should be a quality about all this technology etc. uh this is the idea of kind of regulation but not regulation in the sense of licensing. I mean clarity about the definition and what requirement it should be in order to qualify as a smart contract and be used

between [music] two parties. >> I think this is exactly where we really don't need any governments and and and and government should get as far as away from it as possible. I think there is the fun part. I think I'm trying I'm trying to get the AI to give me to assess the cost of the Mika regulation and other EU regulations. But funnily enough, I I would bet that they are far higher than all the value of the frauds. You know that the government is creating by far bigger damage by by regulating these markets than the amount of frauds that are actually taking place in EU. Uh but interestingly enough, you know, I really it's hard to even with Grock and with uh with Chpt to come to any sources. It seems they didn't even

consider making a assessment study. How much damage are they creating? And of course the damage is huge because the regulation is fully and uh and the the cost will be enormous on the EU markets and the only result will be that the will will fall further behind all the rest of the world and we are just going to make a scan to which Chinese tourists are going to visit to visit the medieval castles here. >> So uh just uh my personal opinion they did not regulate the market to avoid fraud. That's doesn't make sense. I think they decided such kind of regulation etc. This is for some political reason for some technical reason for some control reason uh about the stable coins etc. There are some

financial reason that are important for the government but the fraud itself first the control about the fraud started a long time ago with the f I don't remember which directive said that um crypto service provider are obliged entity for the IML purpose so the control of the fraud started with the IML but the mika regulation I don't think this is to avoid fraud but it would have a consequences for victim of fraud to have a better uh way to recover.

>> I'm very sure that all these regulations are there to impose more stealing by governments from the people and make bigger police state, right? Just so so we're on the same line there. >> Yeah. >> By the way, about the smart contract. So again, let's come back to the essence of the crypto and the Bitcoin white paper and it describes actually why it was developed, created, whatever. uh and there was no word about uh some anonymity or something like this. So if you're doing your job correctly according to the law why shouldn't be aware of some illegal activity from someone. So this is again the main task and why crypto exist and we are all using this is the transparency this is the safety uh speed and reducing the

cost. So um by the way there is now in EU commission they're discussing to um oblige uh de deployers to accompany the smart contract with the legal disclaimer for the consumer's protection to explain to for consumers to understand what exactly he is signing for I did per personally many times I made a huge mistake I signed a smart contract considering that I'm just signing in some website but uh unfortunately it wasn't so I lost some money but if someone described me that what exactly I'm doing maybe I will make I would make at that moment another decision so why not why not to make these disclaimers it is obvious

>> sorry I didn't Uh no I didn't get the legal principle of caviar >> cavia enter >> what? Yeah, I don't I'm not sure in continental here we don't have that but can you just explain what it is into the Anglo-Saxon what does it mean exactly? >> Yeah. So the principle of caveat empter caveat empter is uh Latin and uh it just means it it translates in modern days to buyer beware like you know so you're shopping and you buy something and it's not what you thought it was it's it's your fault

>> right so and that's a principle in Anglo-American law >> y >> and and and and I'm not talking about like frauds where somebody drains your wallet and stole from you but I'm talking about like the example that we just had there like I went to the website I did anything. I clicked on it and I signed it, you know, and then the result wasn't what I thought I was going to get as a general statement at the baseline of the fundamental principles that are available in law and equity and angle of American law. The first thing I think about is caveat emper like you know tough luck.

>> Yeah. So in two that's the same into continental law. So uh first it is important what you understand maybe it's important what you understand as a consumer you're going to buy and the analysis would be if a normal consumer understand this and the product is different then those who are offering the product are uh liable because this is a misrepresentation. Okay. So it is about the way a normal person will understand the core characteristic of a product normal person the fact that you are

stupid you understand nothing about you sign the contract etc nobody cares about that okay but you need when you make an analysis usually if I understand this way as a lawyer that means a normal person should understand that way and when you go to the judge he will say yeah that a normal person will understand that Hey, whether the client has understand that way or different way by the way it's doesn't matter you know into the kind of misrepresentation that we are we are talking about into the financial service and now by the way it will be into the crypto service because this is one of the most important principles into financial how you uh you how you advertise you market you

present your product and how your product should be understood but not whether or not it will be understood. That's a different question. In my opinion, nobody cares about that. >> Okay. Thank you. >> Thank you. Let me please one remark, one small remark. In law, there is a great principle, good face. If someone who deployed this smart contract, he was acting in a good face. So what his what was his intent to take your money or just to let you to sign in? This is the the answer to your question. So if his intent was elicited, he has to be punished and revoke all losses. Thank you.

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