Crypto Fraud

Graphic of a Bitcoin

Our attorneys have experience handing complex investment fraud cases involving Bitcoin and other types of crypto currency.  Our attorneys received the same investigatory training that is provided to members of federal law enforcement and major banks. We can assist in complex cryptocurrency investigations and can help clients in the following key areas:

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Crypto Exchange Disputes

Crypto exchanges are responsible, directly and indirectly, for billions of dollars of fraudulent transactions. Suing an exchange is often complex and may involve the following allegations: (1) the exchange was negligent in enforcing the Bank Secrecy Act (they let a “bad guy” on their platform or failed to stop suspicious activity); (2) the exchange was negligent in supervising its employees who may have leaked your data or were complicit in the crime against you; (3) the exchange lied about the nature of its insurance, cold storage or other policies; (4) the exchange maintained inadequate cyber security controls and were negligent in this regard.

Our attorneys have experience handling disputes against crypto exchanges.  These disputes are often very complex and involve forensic investigation.   

SIM Swap Scams

Many victims of financial fraud have crypto from them due to sim swapping or sim hijacking.  These scams involve a hacker taking over a victim’s cell phone. The hacker convinces the victim’s cell phone provider to port, or transfer, the victim’s SIM information to a new cell phone.  Once the SIM information is transferred, the hacker gains control the victim’s cell phone and can receive text messages.  With the ability to receive a victim’s text messages, the hacker requests password resets (via SMS) and accesses the victim’s accounts.  The hacker transfers funds and changes the victim’s email address on file with the exchange – making it difficult for the victim to recover funds quickly. 

The victim in this situation can pursue a case against their cell phone provider.  They may also be able to sue other parties, including their exchange

Financial Advisors Selling Crypto

Financial advisors and stockbrokers are required to be registered with the Securities and Exchange Commission (SEC) as well as the Financial Industry Regulatory Authority (FINRA).  If you decided to purchase cryptocurrency because it was recommended to you by your financial advisor, you may be able to pursue a lawsuit against them.  Your financial advisor may have tried to explain to you that your crypto investment was “outside” of your investments with their brokerage firm – this doesn’t matter.  Under the Securities Laws, broker-dealers are legally liable to their customers for all sales of investments. 

If you purchased crypto currency because of your financial advisor’s recommendation, you may be able to sue for damages arising under federal securities laws as well as FINRA’s regulations.  

“John Doe” Lawsuits for Discovery

“John Doe” lawsuits are lawsuits that are filed against the unknown criminal that stole your crypto.  The purpose of the lawsuit is to use discovery to seek the identity of the wrongdoer as well as other evidence.  This evidence could be used to directly recover your crypto from the criminal, but that is not likely. It is more likely that this evidence may expose negligence or wrongdoing on the part of others (i.e. an exchange).

Our attorneys were trained to use the same forensic tools that are currently used by federal law enforcement.  We understand this problem from all sides.

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