Rumen Cholakov
Call: 2021; 2016 (Solicitor); 2021 (New York Bar)
Practice Overview
Rumen has a particular interest in complex civil fraud cases. He appeared as sole counsel in Nexo Capital Inc v Georgi Shulev & Others [2023] EWHC 1646 (Comm) and achieved the dismissal of Nexo’s heavy summary judgment/strike out application in its entirety. This was a significant decision opening the way for Mr Shulev’s claim over the ownership of the Nexo Group in what is one of the biggest crypto-related cases currently before the English courts with an estimated value in excess of US$ 1 billion. The application raised issues of res judicata, duress, misrepresentation, unconscionable bargain, intimidation, admission of late evidence, unlawful means conspiracy, and interim injunctions. Rumen is also instructed by Tulip Trading Limited in its claim against Bitcoin Association for BSV & Others for the recovery of c.£3.3 billion of Bitcoin.
Rumen frequently acts in banking disputes, in which his career at the Bar builds on his previous experience as a solicitor representing private equity clients in a wide range of financing transactions. He appears both led and as sole counsel in matters involving loan and bond agreements, bankruptcy and insolvency proceedings, and issues relating to the Companies Act 2006, Financial Services and Markets Act 2000, and Consumer Credit Act 1974.
Procedurally, Rumen has significant experience in commercial arbitration (ICC, LCIA, PCA, and ad hoc proceedings), as well as interim applications and relief in court, including worldwide freezing injunctions, interim injunctions, security for costs, strike out/summary judgment, default judgment (and applications to set aside), permission to amend statements of case, Part 18 requests for further information, costs and case management conferences, and proceedings to enforce foreign judgments and arbitral awards (including investment treaty awards that involve state immunity issues).
Rumen is a member of the New York Bar. He has worked as an Intern at the Brooklyn District Attorney’s office and the United Nations Development Programme and as a Research Assistant in international commercial arbitration to Professor George Bermann.
Arbitration
- Acting for the corporate claimant in a US$2.5m ad hoc arbitration seated in London, as sole counsel, which was resolved through a favourable settlement following pleadings.
- Acting in proceedings for the recognition and enforcement of an ICSID award where the state has asserted an immunity challenge, led by Christopher Harris KC.
- Acting for a syndicate of banks in the UAE in an LCIA arbitration claim seated in Abu Dhabi for over AED 878m, led by Tom Montagu-Smith KC and Matthew Watson.
- Acting for a FTSE 100 company in relation to an ICC arbitration seated in London concerning a shareholder dispute of relating to one of its subsidiaries (settled), led by Tom Montagu-Smith KC.
- Acting for one of the respondents in a PCA arbitration seated in London, led by Hefin Rees KC, which was resolved through a favourable settlement following pleadings, production of evidence, and mediation.
- Acting in English enforcement proceedings relating to a Swiss ICC arbitration award, led by Hefin Rees KC.
- Anon – acting on an ICC arbitration concerning a commission entitlement in respect of Kazakhstan oil development project (as a pupil).
- Anon – acting for the respondent to linked LCIA arbitrations concerning a dispute between shareholders in a leading hotel group (as a pupil).
Banking & Financial Services
- Acting for a private equity backed portfolio company in a dispute over the potential enforcement of debt facilities, which included successfully obtaining injunctive relief, led by Richard Salter KC and Philip Hinks (High Court).
- Acting for HSBC Invoice Finance (UK) in relation to a third-party disclosure application, as sole counsel (High Court).
- Acting for MoneyGram Payment Systems, Inc. in a claim for breach of contract against one of its payment agents.
- Acting for MoneyGram International Limited as defendant to a claim for restitution of funds transferred towards an alleged fraudulent scheme.
- Acting for Halifax Share Dealing Limited T/A Iweb Share Dealing Service in the successful defence of a s. 138 FSMA 2000 claim based on breaches of the COBS best execution rules.
- Acting for Barclays Bank UK PLC in the successful strike out of a claim brought by a consumer in relation to the purchase of a car.
- Regularly acting for financial institutions defending secret commission and/or Consumer Credit Act 1974 claims, including HSBC UK Bank PLC, Barclays Bank UK PLC, Santander Cards UK Limited, Lloyds Bank PLC, MBNA Limited, Marks & Spencer Financial Services PLC, Creation Financial Services Limited, Blemain Finance Limited, and Vanquis Bank Limited.
Rumen is a contributor to Paget’s Law of Banking (16th Edition: 2023), the Butterworths Journal of International Banking and Financial Law, the Butterworths Financial Regulation Service, and the 3VB Finance Column on PLC.
Civil Fraud & Asset Tracing
- Nexo Capital Inc v Georgi Shulev & Ors. Acting for one of the founders and former directors of a digital asset financing platform as a defendant in a dispute relating to the control of certain crypto assets and claimant in a counterclaim alleging unlawful means conspiracy perpetrated by two other co-founders, Mr Konstantin Kantchev and Mr Antoni Trenchev, who misappropriated Mr Shulev’s ownership of Nexo with an estimated value of US$372m – US$1.132bn, led by Tom Montagu-Smith KC (High Court).
- Tulip Trading Limited v Bitcoin Association for BSV & Ors. Acting for the claimant in the alleged fraud and misappropriation of the private keys to c.£3.3bn of Bitcoin, led by Michael Fealy KC, James McWilliams, and Calum Mulderrig (High Court).
- Giwa v JNFX Ltd & Ors. Acting for the claimant in an alleged unlawful means conspiracy relating to the misappropriation of c. US$16m following a series of foreign exchange transactions, which included successfully obtaining a worldwide freezing order and related disclosure orders, led by Matthew Bradley KC (High Court).
- Acting for one of the defendants in an alleged unlawful means conspiracy claim relating to a crypto asset investment platform, as sole counsel (High Court).
- Benkel v East-West German Real Estate Holding [2020] EWHC 1489 (Ch) – acting for the defendants to a claim brought by the Trustee in Bankruptcy of Eliezer Fishman, the largest bankruptcy in Israeli history, in relation to an alleged portfolio of concealed assets (as a pupil).
- Suppipat and others v Narongdej and others [2020] EWHC 3191 (Comm) – acting for Siam Commercial Bank as one of the defendants in an alleged fraudulent conspiracy relating to Thai energy companies with an estimated value of US$1-2 billion (as a pupil).
Commercial Dispute Resolution
- Acting for an ex-shareholder of a business in the High Court claim against his former partners for unlawful means conspiracy to appropriate his shares at undervalue ahead of the sale of the business to a third party, as sole counsel.
- Acting for two brothers as defendants to a claim from a former business partner for having appropriated its shares at undervalue prior to selling the business to a third party, led by Richard Hanke (High Court).
- Acting for Tribe Payments Ltd in a contractual dispute with Incruises International LLC in relation to the provision of payments software, as sole counsel.
- Acting for a pro bono client in a commercial dispute for breach of contract and unjust enrichment, as sole counsel.
- Acting for British Car Auctions Ltd in relation to a claim brought by Beckside 4X4 Limited in relation to the auction of a vehicle, successfully obtaining an unless order for non-payment of costs in a previous related claim.
- Successfully defended Albert E James & Son Limited in a claim for breach of two contracts for the supply wheat brought by Western Arable Services Limited that was dismissed with costs following trial, as sole counsel.
- Successfully defended Corethree Limited in a claim for unpaid recruitment fees by Altih Vore Consulting Limited that was dismissed following trial, as sole counsel.
- Yoo v Iliv [2021] EWCA Civ 560 – acting for the claimant in a claim to recover sums due under a design services agreement in respect of a leading property development in Singapore (as a pupil).
Crypto Assets
- Nexo Capital Inc v Georgi Shulev & Ors. Acting for one of the founders and former directors of a digital asset financing platform as a defendant in a dispute relating to the control of certain crypto assets and claimant in a counterclaim alleging unlawful means conspiracy perpetrated by two other co-founders, Mr Konstantin Kantchev and Mr Antoni Trenchev, who misappropriated Mr Shulev’s ownership of Nexo with an estimated value of US$372m – US$1.132bn, led by Tom Montagu-Smith KC (High Court).
- Tulip Trading Limited v Bitcoin Association for BSV & Ors. Acting for the claimant in the alleged fraud and misappropriation of the private keys to c.£3.3bn of Bitcoin, led by Michael Fealy KC, James McWilliams, and Calum Mulderrig (High Court).
Insurance & Reinsurance
- Acting for Hamsard One Thousand and Forty Three Limited in an insurance claim against AE Insurance Brokers Limited, led by Hefin Rees KC (High Court, 5-day trial).
White Collar Defence & Investigations
- Acting in two investigations by the Serious Fraud Office, including review of the evidence and preparation for and attendance in interviews under Section 2 of the Criminal Justice Act 1987.
- Acting for a director in a related investigation by the Insolvency Service.
