ProCap Newsletter No. 75

Dear Clients,

In our recent updates, we discussed the difference between the balance displayed on an investment platform and an investor’s actual financial loss, as well as the evidentiary value of screenshots and account records.

This week, we would like to focus on another important part of the investment history:

What can an unsuccessful withdrawal tell us about what happened?

For many investors, the moment they attempted to withdraw their funds was also the moment when problems with the platform first became apparent.

However, a failed withdrawal can have different explanations, and the fact that a withdrawal was unsuccessful does not, by itself, establish what happened to the underlying funds.

The withdrawal request is only part of the evidence

A record showing that an investor requested a withdrawal can help establish when the request was made, the amount requested and whether the platform initially appeared to accept or process it.

What happened afterwards may be equally important.

In some cases, investors may have been told that they first needed to pay a tax, fee, commission, verification charge or another amount before their funds could be released. In others, the withdrawal may have remained pending, been cancelled, or the investor may simply have lost access to the account.

Communications surrounding the withdrawal can therefore help reconstruct not only the investor’s attempt to recover the funds, but also the explanations and representations made by the platform at that stage.

Does a failed withdrawal prove that the displayed balance was real?

Not necessarily.

If an account displayed a particular balance and the investor was unable to withdraw it, this does not independently establish that the full displayed amount actually existed.

This is why the distinction discussed in our previous updates remains important: the amount displayed by a platform and the amount of money actually transferred by an investor are not necessarily the same.

Nevertheless, a failed withdrawal may still be relevant when considered together with payment records, account screenshots, correspondence and other available evidence.

Why should communications after a withdrawal request be preserved?

Messages received after an attempted withdrawal may show how the platform explained the delay or refusal and whether additional payments were demanded.

For this reason, emails, chat messages, withdrawal confirmations, rejection notices and screenshots showing the status of a withdrawal should be preserved where they remain available.

What does this mean for ProCap clients?

At present, we have no new verified procedural information concerning the ProCap matter that requires action from our clients.

There is no need to resend documentation that has already been provided. If you still hold records concerning withdrawal attempts or related communications that have not previously been submitted, they should be preserved.

We will continue to monitor information relevant to the ProCap matter and will inform you of any verified development that may affect your position.

Thank you for your continued trust.

Kind regards,
Attorney Zoran Miljaković