Cryptocurrency is definitely obscure. It comes with its own language and set of terms and many that operate in this space operate using anonymity through the meme profile pictures as well as pseudonyms.
Cryptography’s legality is also obscure. Can it be incorporated into established financial regulations? Is it something completely new completely? What is the implications to those who profit of the obscurity and profit at the expense of other people? With crypto becoming more popular, lawsuits and administrative cases are popping up and grappling with the issues.
What kind of crypto-related lawsuits Are Taking Place?
Since 2013, numerous suits have been brought related to cryptocurrency. A few are brought before authorities that regulate, like that of Securities and Exchange Commission or the Commodity Futures Trading Commission.
Other enforcement actions are taken from Department of Justice. Department of Justice involving criminal laws. The Department of Justice was in February when DOJ arrested a couple with conspiracy to commit the laundering in the billions of bitcoins that were that was allegedly stolen from a digital money exchange.
There are lawsuits that are class action private in which a number of victims who are similarly affected from a particular actor or product join forces to file a lawsuit. The lawsuit was filed in May after the supposed to be more stable cryptocurrency, GYEN declined, investors filed suit against the owners of GYEN.
What legal issues are at the Legal Cases involving Cryptocurrency?
A lot of the problems that arise in this area are related to a fundamental legal notion that is fraud. The term “fraud” refers to the situation where a entity or person lies to or misleads another person, either via outright deceit or deceiving or concealing the truth. It can cause the victim to lose something valuable.
A case involving fraudulent activities that involves crypto investment could be governed by a range of statutes, based on what nature of the activity as well as the place it took place.
One of the most obscure aspects of cryptocurrency within the law is whether the different products can be considered to be securities according to the laws. Security is a kind of financial instrument, which is governed by specific laws and is tightly controlled. If the cryptocurrency you purchase is classified as a security, then securities law is a factor. If it’s not classified as a security, the different areas of law that target fraud need to make up the gaps. However, this particular area, it applies to crypto assets, is a bit hazy and unclear.
The crypto industry represents one of the Wild West of the new millennium. Criminals are everywhere and laws specifically pertaining to the crypto space have yet to be able with the need to monitor the activities. In the meantime, cryptocurrency investors should remain cautious and careful when it comes to their investments.
There is no need to resolve the problem on your own. Seek the help of a lawyer
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