20 Apr 23

Cryptocurrency Fraud Attorney

| by

Last Updated on: 26th August 2023, 10:17 pm

Protecting Your Assets and Future

The emergence of virtual currencies such as Bitcoin has revolutionized the world of finance. However, many people who embrace these technologies do so without fully understanding them, leading to fraudulent use of cryptocurrencies. This has attracted the attention of agencies that impose severe penalties on those found guilty of cybercrimes. If you face fraud charges involving cryptocurrency, it is crucial that you have an experienced attorney who will protect your constitutional rights.

Cryptocurrency technology enables people to transact without a third-party administrator or a central bank. Its goal is to eliminate the authority of a central third party and reduce transaction costs. With Bitcoin, users carry out transactions with anonymity using digital wallets that nobody else can see. However, this anonymity has created a loophole that fraudsters exploit for money laundering, illegal sales or purchases, and online fraud.

At Spodek Law Group, we understand the complexities surrounding cryptocurrency law and keep up with emerging activities in the digital world using cutting-edge defense strategies to protect your future and advocate for your constitutional rights.

Defending Against Cryptocurrency Fraud Charges

Fraud involving cryptocurrency is new and difficult to track and prove; only a few attorneys have experience in cryptocurrency investigations and prosecutions. Our attorney for crypto criminal defense has been at the forefront of these prosecutions for years making him one of New York’s leading cryptocurrency attorneys.

Together with our clients, we gather information and documents assessing their situation before developing strong defenses against any charges they may be facing regarding fraudulent use of cryptocurrencies.

Cryptocurrency Tax Issues You May Face

The IRS is currently battling Coinbase alongside other platforms dealing with cryptocurrencies to ensure taxpayers trading in crypto pay taxes due on their earnings from such trades properly reported on tax returns filed annually by taxpayers across America.

Spodek Law Group’s tax attorneys are well-versed in helping taxpayers deal with issues surrounding their cryptocurrency assets including tax reporting requirements under US laws governing taxation matters related thereto like capital gains arising from the sale or transfer of crypto, legal opinions on ICOs, tax strategies for day traders, tax audits and litigation as well as regulatory compliance.

IRS Disclosure Program: Mitigating Your Risks

If you have not reported your cryptocurrency transactions to the IRS yet, it is advisable to consider amending your prior tax returns and participating in the voluntary disclosure program. The agency has no time limit for auditing fraudulent tax returns where taxpayers fail to report their holdings properly.

Tax authorities nationwide are taking a proactive stance on investigating cybercrime involving cryptocurrency and pursuing cases involving its use in money laundering schemes, ICO scams among others. Therefore it is essential that you have an attorney with experience and a deep understanding of this emerging field of law like Attorney Todd Spodek at Spodek Law Group who can help protect your rights while ensuring that you receive the best possible outcome when facing any legal situation related to cryptocurrencies.

Emerging Cryptocurrency Fraud Schemes

With the emergence of cryptocurrency platforms come fraudulent schemes such as initial coin offerings (ICOs). Any fraud or theft involving these networks may lead to severe legal consequences and criminal penalties. It is therefore important to work with an attorney who understands these complexities and can build a strong defense against any charges brought against you regarding fraudulent use of cryptocurrencies.

Experienced Defense Strategies for Cryptocurrency Fraud Charges

At Spodek Law Group, we employ cutting-edge defense strategies that leverage our deep understanding of this emerging field’s laws. We understand how crucial it is to protect our clients’ rights when facing charges related to fraudulent use of cryptocurrencies; hence we work tirelessly towards achieving favorable outcomes for them always.

Protecting Your Constitutional Rights

When facing cryptocurrency fraud charges, protecting your constitutional rights becomes paramount. At Spodek Law Group, we understand this importance; thus, we work tirelessly towards ensuring that our clients’ constitutional rights are protected throughout their case proceedings until they receive favorable outcomes from courts handling such matters across America.

Contact Attorney Todd Spodek at Spodek Law Group Today

At Spodek Law Group, we have the necessary experience to handle any legal situation involving cryptocurrency. We understand the complexities of this emerging field and use our knowledge to protect our clients’ rights and futures. Contact us today for legal assistance from Attorney Todd Spodek, one of New York’s leading cryptocurrency attorneys. Our goal is to ensure that our clients receive the best possible outcome while protecting their constitutional rights always.

Cryptocurrency ICO SEC Subpoena Lawyers

CoinDesk, which is a platform that provides news about the latest developments in the crypto asset and blockchain community, reported that monthly investments in ICOs was on the rise in the past year. As a result, the industry accumulated an estimated $3 billion in investments during January and February of 2018.

While the SEC has reacted to this drastic increase by creating a skilled cyber unit within the law enforcement division, it is still a complex issue because ICO structures are always changing. These changes may or may not provide implications on federal security laws, so there isn’t a regulatory scheme that is customized to ICOs. As a result, the SEC continues to struggle with the issue of whether or not crypto-currency is subject to jurisdiction by the SEC.

What is the Howey Test?
Crypto-currency doesn’t fit perfectly within the tradition categories that constitute securities as stated in Section 2(a)(1) of the Securities Act of 1933. This is also know as the Act, and it enables corporate stocks and bonds to be subjected to the Howey, which will decide if any certain token offerings would count as a type of “catch all” security. This can also be described as an investment contract. When the Howey Test is administered, the same formula will be used that was initially created in 1964 by the Supreme Court. This is an agreement that counts as an investment contract, and it involves an investment of funds in a common enterprise. In addition, there must be an expectation of profit, and the profits must be derived from the efforts of others.

The 2017 DAO Report did not specify any concrete guidelines in regards to developing a token offering test in addition to the Howey Test. In fact, it was noted that in February of 2018, the chairman for the SEC stated that he feels every ICO token reviewed by the SEC could be considered a security in legal terms.

What is the Utility Token Argument?
There are a many companies that continue to advocate that their ICOs are non-security utility tokens, so they should be outside of the SEC’s jurisdiction. In other words, an ICO is a fund raising structure that allows startup businesses to issue and sell crypto-currency to individual on an open ledger, which is often known as blockchains. This is an exchange for cash that is supposed to be invested in the development of a startup business and are typically network-based computing services.

When a given ICO includes tokens that are made to provide functional access to the products or services the business offers, many feel that these tokens are more like a pre-purchase investment or a coupon that is used to redeem a product as opposed to an investment in securities.

It is important to note that when an ICO token is considered pre-functional, which is when it is used before a business has started to develop the product, the SEC will issue subpoenas to send a clear message that these arguments gain little recognition from the agency. The primary focus of an SEC investigation is to observe board members and executives who use utility tokens, and the agency focuses on investigating promoters who have made offers before registering as a broker dealer.

Regulation D Exempt ICOs & SAFTs: What You Should Know
To comply with the ACT and the regulated SEC guidelines, an increasing number of businesses (especially startups) have made drastic efforts to establish ICOs to adhere to all the rules of the Act and the SEC guidelines. The first company to register a token sale was The Praetorian Group. The company did so by filing a Form S-1 with the SEC. The company has significantly relied on the registration exemption that can be found in Rule 506 C of Regulation D in the Act. According to this rule, an issuer of tokens is permitted to raise an unlimited amount of funds from unregistered product sales. However, it is necessary that all of the investors are considered accredited investors. In addition, any securities that are sold under Rule 506 C have restrictions, and if violated, can result in a lock-up period of token resales that can last up to one year.

The SEC attempts to stay ahead of the ongoing challenges to stay that come with the technology and market appeal of crypto-token offerings. Some feel that the use of the Howey Test is an antiquated method that is not able to properly address the unprecedented methods of capital investments and gains in today’s market society. However, the recent rise of subpoenas issued that was issued by the SEC is a warning sign that the organization is aware that many individuals are operating close to the fray of federal laws. An attorney can advise startup business owners (who want to use crypto-tokens) on the best course of action.