Lawyers for Cryptocurrency Fraud Defense - Federal Lawyer
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Lawyers for Cryptocurrency Fraud Defense

Experienced Cryptocurrency Fraud Defense Team

Is your business being investigated for cryptocurrency fraud? If so, then there is no time to waste in hiring an experienced cryptocurrency fraud defense team.

The federal government has grown more wary of the use of cryptocurrencies. Agencies such as the SEC have increased their investigative efforts into both individuals and companies that rely on blockchain technology and deal with cryptocurrencies.

Coordinated efforts have also been made with the IRS, FBI, ad DOJ for failing to report all cryptocurrency transactions or falsely reporting cryptocurrency transactions and criminal-related crypto fraud.

It is time to act fast to defend yourself against a federal investigation. At Oberheiden, P.C., we have a dedicated crypto fraud defense team experienced in handling federal investigations involving the blockchain and cryptocurrencies.

We make it a priority to stay abreast of all legal and regulatory changes affecting cryptocurrencies. Our crypto fraud defense attorneys can handle complex issues about cryptocurrencies and can devise strategic defense strategies.

A federal investigation can turn into a protracted litigation really fast. Do not let this happen to you. Hire an experienced attorney right away.

Put Oberheiden, P.C. on your side to fight for your rights and defend your reputation.

Put our highly experienced team on your side

Dr. Nick Oberheiden
Dr. Nick Oberheiden

Founder

Attorney-at-Law

John W. Sellers
John W. Sellers

Former Senior Trial Attorney
U.S. Department of Justice

Local Counsel

Joanne Fine DeLena
Joanne Fine DeLena

Former Assistant U.S. Attorney

Local Counsel

Joe Brown
Joe Brown

Former U.S. Attorney & Former District Attorney

Local Trial & Defense Counsel

Amanda Marshall
Amanda Marshall

Former U.S. Attorney

Local Counsel

Aaron L. Wiley
Aaron L. Wiley

Former Federal Prosecutor

Local Counsel

Roger Bach
Roger Bach

Former Special Agent (OIG)

Michael Koslow
Michael Koslow

Former Supervisory Special Agent (FBI)

Chris Quick
Chris Quick

Former Special Agent (FBI & IRS-CI)

Kevin M. Sheridan
Kevin M. Sheridan

Former Special Agent (FBI)

Ray Yuen
Ray Yuen

Former Supervisory Special Agent (FBI)

Dennis A. Wichern
Dennis A. Wichern

Former Special Agent-in-Charge (DEA)

Cryptocurrencies and Fraud Investigations

Cryptocurrencies

Financial innovation and technological advances have led to the creation of hundreds of different cryptocurrencies.

Many companies have started using cryptocurrencies in their businesses to help with transaction speed and efficiency as well as because cryptocurrencies are simple and easy to use.

Cryptocurrencies are digital assets stored on the decentralized, distributed blockchain and used as a means of value exchange or transfer.

The most common cryptocurrency is Bitcoin. Cryptos that came after Bitcoin are called Altcoins—which are basically any crypto other than Bitcoin. Other notable cryptocurrencies include Ether, Litecoin, Bitcoin Cash, Dogecoin, and XRP. New coins are introduced or mined through a process called cryptocurrency mining.

That said, because Congress has not enacted consistent legislation for blockchain companies and cryptocurrencies, federal agencies are relying on traditional, already-existing statutes to investigate individuals and companies for alleged crypto fraud schemes.

Fraud Investigations

The federal government understands that the growing crypto world cannot be stopped. It also understands the possible fraud risks associated with dealing with crypto transactions.

Broadly, crypto fraud refers to the deceptive practice of using cryptocurrencies to induce others to transfer their cryptocurrencies or other forms of money to them.

To help investors remain wary of companies and individuals engaging in crypto transactions, the SEC mentions certain behaviors and red flags that may suggest fraud. Some examples of these warning signs include the following:

Criminals and fraudsters know all too well that crypto transactions are more secure and secretive than traditional money laundering with cash and commodities.

The most common crypto scams involve appealing to specific investors to get their money. The fraudsters typically engage in the warning signs revealed above.

Federal Agency Regulatory Scope

Because blockchain and cryptos are such a novel area, federal authorities are keeping a close eye on their development and use by individuals and businesses.

Also, as mentioned, blockchain companies and cryptocurrencies in general are subject to either little or no regulation. That said, federal agencies are using already-existing statutes to investigate and prosecute various instances of crypto fraud.

Crypto fraud involves misrepresentations involving cryptos that are made to investors and that induce them to invest in the fraudster’s enterprise. Crypto fraud could also involve other additional issues such as stolen identities, fake videos, laundering crypto, and schemes that span across multiple countries.

One of the biggest challenges for federal agencies is understanding the blockchain and tracing public addresses. Remember, the names of the individual who has the crypto account is not disclosed but the public address is revealed—making crypto transactions not anonymous but pseudonymous.

In any event, federal agencies are trying hard to keep up, some of which are catching up quickly. The agencies most involved in crypto-related investigations, litigations, and prosecutions are listed below:

  • SEC: The SEC is the leading federal agency responsible for crypto investigations. Most SEC-related investigations focus on whether the cryptocurrency is a security, therefore requiring registration and ongoing reporting and disclosure obligations under the federal securities laws.
  • CFTC: This agency has also been notable for investigating companies using cryptocurrencies in their business operations. Cryptos such as Bitcoin and Ether have already been classified as “commodities” and are therefore subject to CFTC regulation. The CFTC is mindful of other coins that may be potential commodities.
  • IRS: The IRS treats virtual currency transactions as property. Since 2019, it has required that U.S. taxpayers report under penalty of perjury whether they have engaged in virtual currency transactions. Failure to answer truthfully could lead to criminal penalties. The IRS is committed to investigating individuals and companies for failing to report or falsely reporting their crypto—or virtual currency—transactions.
  • FinCEN: This agency imposes AML/KYC requirements on various financial institutions. As an example, businesses with crypto exchanges need to comply with the Bank Secrecy Act to maintain compliance, especially AML compliance.
  • FBI/DOJ: These agencies will get involved when there is an indication for criminal conduct in connection with the investigations initiated by the above agencies or by the FBI/DOJ themselves.

The above are only a few examples of federal agencies on high alert for those using cryptocurrencies. Other federal agencies who have also issued alerts and announcements to the public about crypto fraud include the FTC and OCC.

If you need defense help for crypto fraud, give us a call today.

Need Cryptocurrency Fraud Defense Assistance?

A cryptocurrency fraud allegation is possible in today’s world where businesses are increasingly willing to transact with cryptos and blockchain technology.

Federal agencies such as the SEC—along with the IRS, FBI, CFTC, and DOJ—will waste no time investigating individuals and companies suspected of injuring investors and harming capital markets through fraudulent crypto schemes.

If you find yourself in the middle of a crypto fraud investigation, then it is time to retain an attorney experienced in federal investigations, securities laws, and the expanding fields of blockchain and cryptocurrencies.

At Oberheiden, P.C., our defense team includes attorneys and consultants who work together to devise a personalized defense strategy for your case.

We will defend you at every stage of the investigative and litigation process. Call or contact us today for a free consultation.

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