ProCap Newsletter No. 70

Dear Clients,

As we enter September, we would like to provide you with a brief update regarding the ProCap case.

At present, there is no new verified official development that requires action from our clients. We continue to follow information that may be relevant to ProCap and will inform you when a development occurs that materially affects your position.

This week, however, we would like to address an issue that frequently arises in international investment fraud cases: why information circulating online is not always the same as a verified development in a legal proceeding.

Information often appears online before its significance is clear

Investment fraud cases involving a large number of victims can generate substantial online discussion.

Information may appear on social media, Telegram groups, investor forums, websites or through communication between individual victims.

This may include claims that particular individuals have been identified, that accounts have been frozen, that authorities in a certain country have opened an investigation, or even that funds have been located and will soon be returned.

Some of this information may ultimately prove relevant.

However, the existence of such a report does not automatically mean that its contents have been officially confirmed or that it has legal consequences for ProCap investors.

Why do we distinguish between information and verified developments?

When assessing information concerning an international investment operation, several questions are important.

Where did the information originate? Is there an official document or statement supporting it? Which authority or court is involved? Does the development concern ProCap itself, a connected entity or only a particular individual? And, most importantly, does it have any legal relevance to the position of our clients?

A development may be genuine but still have no immediate effect on investors in another jurisdiction.

Similarly, information concerning an arrest, investigation, company or bank account may be important for understanding the wider factual background without creating an immediate opportunity for recovery.

For this reason, we consider not only whether information is new, but also whether it can be verified and what it actually means.

Why can unofficial information sometimes be misleading?

Victims of investment fraud understandably follow developments closely and often exchange information with one another.

However, this can also create an environment in which incomplete information spreads quickly.

For example, an investigation may be described as a criminal prosecution before any charges have actually been filed. A temporary restriction on an account may be described as a final confiscation of assets. Information concerning one company may be presented as if it automatically applies to every connected platform.

Perhaps most importantly, the identification or freezing of assets may be interpreted as confirmation that compensation to victims is imminent, even though no distribution procedure has been established.

These distinctions can significantly change the legal meaning of a development.

Be particularly cautious about claims that recovery has already begun

Another reason to verify information carefully is that fraudsters may take advantage of genuine news concerning an investigation or enforcement action.

A real development involving a platform, company or individual can be used to make a fraudulent recovery offer appear credible.

Someone may refer to an actual investigation or publicly available court proceeding and then claim that your funds have been located and can be released after payment of a tax, administrative fee or cryptocurrency charge.

The genuine part of the story does not make the recovery offer genuine.

For this reason, if you receive information claiming that ProCap funds have been located, frozen or made available for distribution, please do not make any payment or provide sensitive financial information before the claim has been independently verified.

How do we approach new information concerning ProCap?

We continue to monitor developments that may be relevant to the case.

When new information emerges, our assessment is not limited to whether ProCap is mentioned by name. We also consider whether the information concerns connected individuals or entities, financial flows, accounts, proceedings in other jurisdictions or other circumstances that may have relevance to the broader matter.

However, we will distinguish between information that is merely circulating publicly and developments that can be sufficiently verified and meaningfully assessed.

At present, no additional action is required from you.

If you come across information concerning ProCap that you believe may be important, you may forward it to us. There is no need for you to determine whether it is genuine or legally significant before doing so.

We will continue to follow relevant developments and will inform you when verified information emerges that affects the status of the case, potential recovery options or requires any action on your part.

Thank you for your continued patience and trust.

Kind regards,

Attorney Zoran Miljaković