Funding and insurance leaders launch first fully backed no fee crypto fraud recovery model in UK

Heirloom Fair Legal and M2 Recovery have unveiled what they describe as the first fully funded no win no fee recovery model for UK victims of crypto fraud, a structure that blends litigation funding with legal costs insurance to remove the financial barriers that have long stalled digital asset claims.

The partnership arrives as blockchain analytics firm Chainalysis reports crypto thefts of $2.2 billion in 2024, a sharp rise that has left many victims unable to shoulder recovery costs. Under the new arrangement, Heirloom Fair Legal finances the premium that triggers M2 Recovery’s insurance cover, which absorbs up to £250,000 in solicitors’ fees and disbursements. Victims need only commission an initial track and trace report, after which specialist crypto recovery solicitors review the prospects.

Claims that clear a 60% threshold are submitted to the insurer for approval, then independently reviewed by Heirloom Fair Legal with advice from RPC, whose team is led by partner Dan Wyatt. Once the premium is paid, the insurer carries the litigation spend, including investigations, expert reports, and court fees, for claims involving stolen crypto with a value of at least £350,000. Early funded cases are being run by Rosenblatt, overseen by partner Tom Spiller OBE. Executives behind the model say it aligns the interests of victims, funders, and law firms while providing a credible commercial route into a fast growing category of civil fraud litigation.