Cryptocurrency Fraud Defense Lawyers

Cryptocurrency Fraud Investigations and Defense

Federal agencies like the FBI, Department of Justice, the Securities and Exchange Commission (SEC) are constantly targeting individuals and organizations suspected of engaging in cryptocurrency fraud.

Some of the common issues usually being investigated include cryptocurrency scams, unlawful ICO’s, and any other unlawful activity associated with cryptocurrency.

Although digital currencies have recently attracted many investors, it is still relatively new to many people. Considering the fact digital currencies have been largely embraced in the country and around the world, efforts are underway to formulate laws to govern them.

However, until now there are no clear laws that address cryptocurrency issues. That’s why cryptocurrency fraud in the United States is currently being prosecuted under common criminal statutes.

Due to the effect cryptocurrency fraud has on the financial and securities sectors, any person or institution found culpable of cryptocurrency fraud allegations can face steep penalties and hefty fines.

Are You Being Investigated for Cryptocurrency Fraud?

For anyone facing cryptocurrency fraud investigations, hiring and experienced cryptocurrency lawyer is very in preventing the possibility of an indictment. In case you have already been charged, you need to immediately contact a federal defense lawyer.

It is true that dealing with cryptocurrency presents unique challenges, but the truth is that the principles and regulations governing other types of criminal cases will determine the outcome of the cryptocurrency case as equally.

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Load more

Google rating score: 4.9 of 5, based on 736 reviews

Federal Laws that May Affect Cryptocurrency Fraud Cases

Cryptocurrency defense lawyers usually represent coders, investment firms, investment advisors, company owners, and any other individual facing cryptocurrency fraud-related cases.

Cryptocurrency fraud allegations can be charged using the following laws:

• Mail fraud
• Computer Fraud and misuse
• Bank Fraud
• Money Laundering
• Tax Evasion
• Commodity Exchange Act
• Securities Exchange Act of 1934
• Bank Secrecy Act

Common Cryptocurrency Fraud Investigations

There several cryptocurrency allegations that have become common since the cryptocurrency hype started. Several individuals are taking advantage of others who don’t have proper knowledge about cryptocurrency to swindle money from them.

Here are some of the most common fraud allegations:

1. Fraudulent and Unregistered Initial Coin Offerings (ICOs)

Initial coin offerings work almost the same way as initial public offers. It is a way of mobilizing funds for a new venture or business through the issuance of cryptocurrency.

Selling of tokens or coins for unregistered ICO is considered a form of securities fraud. The Department of Justice (DOJ) and the Securities Exchange Commission (SEC) have recently increased their search for individuals and organizations promoting and selling tokens to the public unlawfully.

2. Cryptocurrency Investment Scams

Although most investigations focus on the illegal sale of cryptocurrency, law enforcement agencies also target organizations and individuals involved in other types of digital currency fraud.

A good example of fraud happened in 2019 when the Department of Justice announced that one person had pleaded guilty to cryptocurrency investment fraud.

3. Fraudulent or Wrong Advice Regarding Cryptocurrency

Cryptocurrency investment can equally be problematic for investment advisors. Just like any other investment, financial advisors should be very careful when it comes to advising their clients on cryptocurrency.

They should take into account the best interest of their clients while recommending various cryptocurrency investment opportunities to them.

Failing to offer the right advice, holding back important information, charging excess fees, or churning an investor’s portfolio with intention of making more commission can result in criminal or civil fraud charges.

4. Money Laundering Through Cryptocurrency

The Money Laundering and Transnational Criminal Enterprises, the Department of Justice, the Federal Investigations Bureau and other investigating agencies have in recent days increased the search for organizations and individuals alleged to be using cryptocurrency to launder money.

Penalties for Cryptocurrency Fraud

Considering the fact that cryptocurrency investigation may result in charges under different federal laws, deciding on a potential penalty for a cryptocurrency fraud case means that a specific statute involved must be identified.

Another thing to be determined is whether the cryptocurrency fraud case is either civil or criminal.

Other than the fines involved, a convicted person may also face a prison sentence including the following:

• Computer fraud – 10 years for every count
• Mail fraud – 20 years for every count
• Money laundering – 20 years for every count
• Securities fraud – 20 years for every fraud