The C42 Way
Learn More About Our Approach
What We Mean by “Wrongful Losses”
| Legal lens | Typical scenarios | Why the loss is “wrongful” |
|---|---|---|
| Illicit-Gambling & Gaming Contracts (EU civil-law tradition: Austria, Germany, etc.) | Money staked on online-casino or sportsbook sites that lack a local licence. | Under §§ 1174, 879 ABGB (AT) and parallel provisions in other civil codes, wagers placed on illegal games are void; payments can be reclaimed as condictio indebiti (unjust enrichment). |
| Consumer-Protection & Unfair Practices (EU Directives 2005/29/EC, 2019/2161) | Deposits made after misleading advertising, hidden fees, or dark-pattern onboarding. | A trader who breaches mandatory consumer rules must unwind the transaction and compensate the consumer for any pecuniary loss. |
| Tort / Delict (Fraud, Misrepresentation, Negligence) | Phishing, romance scams, fake investment platforms, or negligent data breaches that enable account takeover. | Victim suffers financial damage caused by the defendant’s unlawful act or omission; damages restore the status quo ante plus interest. |
| Criminal Restitution (Art. 16 EU Victims’ Rights Directive; national penal codes) | Funds laundered through mule accounts or seized by prosecutors. | Criminal courts may order the offender—or the State via a compensation fund—to repay victims’ material losses. |
| Payment-Services / PSD2 | Unauthorised or incorrectly executed electronic transfers. | The payment-service provider must immediately refund the debited amount (Art. 73 PSD2) unless strong customer-authentication was properly applied. |
| Payment-Services / PSD2 + National Consumer-Protection Law | A victim is tricked—via phishing, romance scam, fake invoice or impersonation call—into authorising an instant bank transfer (SEPA Instant, Faster Payments, etc.) to an account controlled by the fraudster.. | Although the payment is technically “authorised,” it is vitiated by fraud or misrepresentation. Depending on the jurisdiction this can trigger: • Bank reimbursement duties under emerging APP-reimbursement regimes (e.g., the UK’s mandatory scheme effective 2024; similar proposals in the EU PSD3 draft). • Tort / delict claims against the fraudster and knowing recipients. • Unjust-enrichment restitution once the funds are traced. Accordingly, the transferred amount qualifies as a wrongful loss that C42 can pursue for recovery. |
In short: a wrongful loss arises whenever a payment is made—or value is extracted—under conditions that the relevant legal framework deems invalid, unlawful, or unfair. C42 targets these losses for recovery on behalf of affected individuals.
Regulatory note: practical recovery routes and bank liability standards vary by country; CyTel42’s legal team analyses each claim against the prevailing PSD2 / PSD3 rules, national banking regulations and case law before purchase.
This explanation is for general information only and does not constitute legal advice; precise entitlements vary by jurisdiction and case specifics.
AI-Based Merit Screening
At CyTel42 we deploy an autonomous AI-agent pipeline that sifts through every submitted case—documents, e-mails, payment records—in real time. Here’s how it works:
Smart Intake – Incoming files are hashed, OCR-scanned and redacted to protect privacy.
Data Extraction – Large-language models identify key facts: jurisdiction, stake size, counterparties, statute-of-limitations dates.
Merit Scoring – Gradient-boosting and deep-learning models assign each claim a probability-of-recovery and expected legal cost, trained on thousands of historical outcomes.
Decision Agent – Claims that meet our threshold are auto-green-lit for acquisition; borderline files are flagged for human counsel, and non-starters are declined—saving victims time and money.
Continuous Learning – As recoveries are won or lost, the system retrains itself, sharpening accuracy with every feedback cycle.
This agent-based architecture lets CyTel42 screen hundreds of claims per hour with courtroom-grade audit trails, cutting due-diligence costs and boosting portfolio IRR. By fusing state-of-the-art AI with on-chain transparency, CyTel42 stands at the forefront of FinTech-enabled litigation finance—delivering faster justice and smarter capital deployment for the C42 ecosystem.
The C42 Currency
CyTel42’s litigation-finance engine runs on-chain. Here’s what that means in practice:
On-Chain Treasury
All recovered funds flow into a transparent smart-contract vault on Ethereum. Anyone can verify balances and outgoing transactions—24/7, in real time.Single Settlement Currency
The C42 Token is our native ERC-20 asset. Instead of juggling wires, invoices or cross-border bank fees, every stakeholder is paid in C42:Victims & Claim Sellers – receive C42 when we purchase their loss claims.
Partner Law Firms & Consultants – opt to take fees or success bonuses in C42, aligning their upside with case performance.
Whistle-blowers – earn rapid, discreet C42 bounties for actionable intelligence that helps trace assets or pressure defendants.
Utility in Action
By routing each payment leg through the token, C42 becomes the utility token that keeps the entire recovery loop turning—creating continuous, organic demand and deepening market liquidity.Trustless & Efficient
Smart-contract disbursements eliminate manual reconciliations and audit headaches, while gas-optimised batch payouts make large case portfolios economically viable.Compliance Ready
All token flows are linked to KYC-verified addresses, satisfying MiCA and AML requirements. A traditional fiat off-ramp is always available, but many partners choose to hold C42 as a direct stake in the ecosystem’s future growth.
Bottom line: From claim acquisition to success fees and whistle-blower rewards, the C42 Token is the frictionless, blockchain-native currency that powers CyTel42’s AI-driven litigation platform—turning every victory in court into instant, transparent value on chain.
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