Dear Clients,
As you already know, we are handling this case in conjunction with the Jubilee Ace and Jenco, GTR cases. Investigations have revealed that both cases are connected. Since the Jubilee Ace Jenco GTR case was initiated first, and the investigation is in an advanced stage, it is advantageous for us to link the 3Key Lyra case to it.
In this newsletter we will provide you with the answer to one of the very important questions we have received over the past few weeks.
When and in which currency is the compensation paid to victims of a criminal offense?
The process of confiscating assets derived from a criminal offense is typically carried out through a procedure known as “asset forfeiture” or “asset seizure.”
Decision on forfeiture: Firstly, the prosecutor must initiate the asset forfeiture process, which often occurs during the criminal proceedings. The court makes a decision to freeze the assets until the end of the trial if it is determined that the property was acquired through illegal means or is linked to the alleged criminal activity.
Right to defense: Owners of confiscated property have the right to defend themselves and can contest the forfeiture decision. They may utilize legal means to demonstrate that the assets were acquired legally.
Judgment and execution: If the defendants are convicted, the court decides on the asset forfeiture, followed by the execution of that decision. Within the judgment, the court also decides on compensation claims for the victims.
Confiscated property can take various forms, including real estate, vehicles, valuables, cash, funds in bank accounts, cryptocurrencies, shares in businesses, stocks, and other items with market value.
Most commonly, both real and movable property, as well as valuables, are auctioned, creating a unified financial pool from which victims of the criminal offense can be compensated. Given that exchange rates or cryptocurrency values may differ at the time of the criminal act and at the time of compensation, the question arises as to which exchange rate will be used for the compensation.
In such situations, the court, either independently or upon the request of the affected parties, engages an expert in economic and financial matters with the task of determining the actual value of the damage or loss at the time of occurrence, i.e. the time when the criminal act was committed, as well as at the time of compensation. This means that the victim should be compensated for the real value lost at the time when the damage occurred.
Whether the payout will be in crypto or fiat currency is a technical question that boils down to the principle of respecting the compensation scheme for the actual damage suffered by the victim.
In our case, the prosecution and court will adhere to the aforementioned principles during their proceedings.
Zoran Miljakovic
Attorney at Law