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A petition has been filed with the European Parliament asking it to implement a scheme to compensate crypto-related victims. The crimes mentioned in petition 0421/2020 include fraud, piracy and extortion.

The author of the petition represents victims in the alleged Bitsane scam case

According to the author, lawyer Jonathan Levy, states the petition asks the block to implement a series of regulatory schemes to “compensate” “victims” of crypto-related crime activities.

He pointed out that “no cryptocurrency funding has been earmarked to compensate victims of directly related criminal activities” in the European Union (EU) to date. The lawyer proposes to introduce a fee of .0001 cents per euro for crypto transactions, which will go to a “super fund for victims”.

According to the petition, victims of crypto-related crimes have “tried to make up for their losses in a variety of ways,” including legal proceedings in national courts within the EU. However, Levy says, “none of these remedies have been successful because of the multi-jurisdiction” of the crypto transactions.

The document goes on to flesh out the issue:

Submitter [Levy] notes that neither the Commission nor the European Ombudsman has expressed competence on this matter. He urges the European Parliament to act directly to help the victims of crypto-active crime as part of its EU strategy for creating a true single market for digital financial services.

Levy is known in the crypto sphere for represent victims of an alleged exit scam by Irish crypto exchange Bitsane. He cited this case as an example of how the Irish authorities had “accomplished little or nothing” to find stolen money.

At the time of writing, the attorney claims the stolen victim money exceeds the $ 1 billion threshold.

The European Commission has rejected the creation of a crypto fraud compensation fund in 2020

Petition 0421/2020 has so far 48 supporters. The status of “available to supporters” also remains on the European Parliament website.

But the feasibility of the petition is still questionable. On October 21, 2020, reported that the European Commission (EC) opposes the creation of a superfund of 0.0001 cents per euro to crypto victims.

The Commission argued that most crypto crimes take place outside of EU jurisdiction. They also claimed to have no authority to set up and operate such a fund.

What do you think of the petition submitted to the European Parliament? Let us know in the comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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