Cryptocurrencyoften referred to simply as “encryption“, represents a revolution in digital currency and online transactions.
But with increased scrutiny by regulators and law enforcement, some investors have been unexpectedly thrust into legal battles over allegations Crypto investment fraud.
What is cryptocurrency-related fraud?
Cryptocurrency fraud involves deceptive practices that exploit vulnerabilities in digital currencies and exchanges. As cryptocurrency adoption grows, the sophistication and prevalence of cryptocurrency investment scams is also increasing.
at recent days, The FBI reported A worrying rise in cryptocurrency investment schemes, with foreign criminals allegedly stealing more than $2 billion in one recent year. Scammers usually approach victims through dating apps, social media platforms, or encrypted messages to build a relationship. As trust develops, they promote their alleged cryptocurrency expertise, luring victims to fake websites. There, victims are urged to invest, only to later discover that they cannot access their profits or have no profits at all.
the FBI It also suggests that cybercriminals are taking advantage of vulnerabilities in the decentralized finance (DeFi) platform. From January to March 2022, which is amazing $1.3 billion worth of cryptocurrencies stolen A whopping 97 percent came from DeFi platforms.
Common types of cryptocurrency fraud
Since cryptocurrencies are decentralized and digital in nature, investigating cryptocurrency fraud can be difficult. Some of the prevalent types of crypto fraud include:
- Ponzi crypto schemes: In cryptocurrency Ponzi schemes, investors are promised high returns, but early investors get paid using new investors’ money until the system inevitably collapses.
- Fake ICOs (Initial Coin Offerings): Scammers create fake ICOs with attractive promises, and after raising funds, they disappear, taking investors’ money with them.
- Cryptocurrency wallet phishing attacks: In these attacks, individuals are tricked into providing their cryptocurrency wallet details. The scammers then access these wallets and empty them.
- Cryptocurrency Mining Scams: In these scams, scammers promise lucrative returns from cryptocurrency mining. People invest, but no actual cryptocurrency mining is ever done.
- Cryptocurrency Redemption Scams: Targeting previous fraud victims, scammers offer to recover lost funds for an upfront fee, then disappear or demand more money.
- Unregistered offers: New cryptocurrency tokens are being sold without proper registration, fooling investors into thinking they are making legitimate purchases.
Cryptocurrency fraud penalties
Cryptocurrency fraud is illegal at the federal and state levels. A conviction for cryptocurrency fraud can carry severe penalties, including large fines, asset confiscation, and imprisonment, depending on the extent and nature of the crime.
If you are facing charges or accusations of cryptocurrency fraud in Dallas, an experienced defense attorney can protect your rights and challenge the evidence against you by:
- Analysis of counts against you and identify weaknesses in the prosecution’s case
- Working with blockchain forensics Experts to investigate digital transactions
- Review transaction history To create patterns that disprove fraudulent intent
- Appealing admissibility For evidence improperly obtained in court
- Consult cybersecurity experts To create the security of digital wallets and exchanges
- Negotiating with prosecutors For reduced fees or alternative decisions
- Educate the court On the nuances of cryptocurrencies and their underlying technologies
- Potential recovery proposal Or corrective actions that could mitigate penalties
- Recommending asset protection strategies To protect legitimate property from seizure
Contact Broden & Mickelsen if you are facing cryptocurrency fraud charges
Facing cryptocurrency fraud accusations can be daunting, but remember that you are not alone. With over 60 years of combined criminal defense experience, Broden & Mickelsen, LLP can provide the comprehensive representation you deserve. We have extensive experience defending clients accused of various state or criminal offenses, including white collar crimes. Contact us now to start your free consultation.