Cryptocurrency Fraud Law

Cryptocurrency law is one of the newest areas of federal legal regulation. Unlike traditional financial crimes involving fiat money, cryptocurrencies only exists digitally. This advanced technology allows users to avoid bank fees, make quick payments, and invest. However, it also offers a certain level of anonymity, increasing federal scrutiny.

Because cryptocurrency accounts are not federally insured, the government has no obligation to help users track down and restore funds lost in Ponzi or other fraudulent schemes. This makes cryptocurrencies, such as Bitcoin, the preferred payment method in many fraud schemes, especially overseas.

If you’ve been charged with cryptocurrency fraud, including running a Ponzi scheme or engaging in deceptive crypto practices, you need federal cryptocurrency crimes defense lawyer Peter Katz. Having once worked as a federal prosecutor, he understands the complex interplay between agencies when financial crimes such as crypto fraud involve the SEC, IRS, and DOJ.

Federal Cryptocurrency Fraud Laws

Cryptocurrency scams are generally categorized as federal securities fraud, a white-collar crime. Scammers usually convince victims to make unregistered financial investments using untraceable cryptocurrency. They might use social media or dating sites to convince victims to convert their assets into crypto and make fraudulent investments, including in Ponzi schemes.

Importantly, investing with or in crypto is not unlawful, provided the transactions are non-fraudulent and, if necessary, registered with the Securities and Exchange Commission (SEC).

You’re also permitted to accept Bitcoin as a payment method. Federal law only prohibits using deceptive practices to obtain cryptocurrency investments or otherwise cause someone to make fake investments in pyramids or other schemes.

Suppose you’ve been charged with wire fraud or a securities crime from alleged deceptive crypto practices. In that case, you need a federal white-collar defense lawyer who understands this complex area of financial criminal law.

Defenses to Crypto Fraud Allegations

Financial crimes involving cryptocurrency generally include the following:

• Tax fraud
• Wire fraud
• Money laundering
• Theft
• Securities fraud

Many federal crypto charges involve fake or fraudulent initial coin offerings (ICOs) used to fund Ponzi schemes or resulting in overseas theft. In such cases, an experienced crypto fraud defense lawyer might help prove that you had no intent to defraud investors, especially if the investment was not profitable. All investments are risky, including investing in or with crypto. Your federal defense lawyer might use evidence from the blockchain to show all transactions were transparent and legal.

Investing in crypto is complicated, and the law in this area is still developing. An experienced securities crimes attorney might argue that alleged misrepresentations were legal oversights. He could also raise traditional legal defenses on your behalf, including alleging that federal investigators conducted unlawful digital searches.

Connect with an Experienced White-Collar Defense Lawyer for Crypto Transactions

Cryptocurrency is here to stay, and the law must adapt to the inherent difference between traditional securities transactions and crypto investments. If you’re under investigation or have been charged with securities fraud related to cryptocurrency, contact crypto defense lawyer Peter Katz immediately to discuss your case.