Cryptocurrency Arbitration and Litigation

When Your Digital Assets Are Stolen or Lost

Cryptocurrency theft, exchange failures, and investment fraud have exploded as digital assets become mainstream. Whether you've lost money to crypto scams, had funds stolen from your wallet, or been defrauded by a failed crypto project, you have legal rights to recover your losses.

Common cryptocurrency legal issues we handle:

  • Exchange hacks and frozen accounts

  • Cryptocurrency theft and wallet compromises

  • Investment fraud and Ponzi schemes

  • Failed ICOs and crypto projects

  • Smart contract disputes and bugs

  • Cross-border cryptocurrency recovery

  • Regulatory compliance issues

Emergency Response for Crypto Theft

Time is critical in cryptocurrency cases. Once digital assets are moved through multiple wallets or converted to privacy coins, recovery becomes exponentially more difficult.

Immediate Steps We Take

We work with leading blockchain forensics companies to trace stolen or fraudulent cryptocurrency transactions, file emergency motions to freeze assets before they're moved to privacy coins or cash, coordinate with law enforcement when criminal activity is involved, and preserve evidence before platforms delete records or go offline.

Asset Recovery Litigation

We file lawsuits to freeze cryptocurrency accounts and recover stolen funds. Our approach includes identifying the real people behind anonymous crypto addresses using blockchain analysis, obtaining court orders to freeze assets at exchanges and platforms, pursuing claims against negligent exchanges and wallet providers, and coordinating international enforcement when assets cross borders.

Cryptocurrency Arbitration

Many cryptocurrency disputes are subject to arbitration clauses in user agreements and smart contracts. We represent clients in crypto arbitration proceedings while pursuing efficient resolution.

Arbitration advantages include:

  • Faster resolution than traditional litigation

  • Expert arbitrators with crypto knowledge

  • Lower costs for smaller disputes

  • Confidential proceedings

  • International enforcement mechanisms

We handle arbitration for:

  • Exchange user agreement disputes

  • Smart contract interpretation conflicts

  • Cryptocurrency business partnership disputes

  • Investment agreement conflicts

  • Platform liability claims

Cryptocurrency Legal Framework

The legal classification of cryptocurrencies in the United States follows a complex regulatory framework involving multiple agencies. Whether a cryptocurrency is considered a security (regulated by the SEC), a commodity (regulated by the CFTC), or falls under other regulatory categories depends on several factors including the degree of decentralization, transaction context, and how the asset was marketed and sold.

Securities Analysis: The SEC applies the Howey test to determine if a crypto asset constitutes an investment contract. Recent court decisions like SEC v. Ripple have established that the same cryptocurrency can be a security in some contexts (institutional sales) but not others (secondary market trading).

Commodities Regulation: The CFTC has jurisdiction over cryptocurrencies as commodities, with Bitcoin and Ethereum generally recognized as commodities. The CFTC regulates derivatives and futures markets and has anti-fraud authority over spot markets.

State-Level Regulation: Many states have their own cryptocurrency regulations, including money transmission laws, consumer protection requirements, and specialized digital asset frameworks that can apply regardless of federal classification.

Investment Fraud and Securities Violations

When cryptocurrencies are determined to be securities, projects that fail to register with the SEC or misrepresent their offerings provide investors with legal remedies under federal securities laws.

Securities violations we pursue:

  • Unregistered securities offerings

  • Material misrepresentations in white papers

  • Pump and dump schemes

  • Market manipulation

  • Insider trading in crypto projects

We work with forensic accountants and blockchain analysts to uncover hidden assets and trace funds through complex cryptocurrency transactions to identify recovery opportunities.

Cross-Border Cryptocurrency Recovery

Cryptocurrency criminals often move stolen funds internationally to avoid U.S. law enforcement. We coordinate with foreign counsel and use international legal mechanisms to pursue cross-border recovery.

International recovery tools:

  • Mutual Legal Assistance Treaties (MLATs)

  • Letters rogatory for foreign evidence

  • International arbitration proceedings

  • Foreign judgment enforcement

  • Asset freezing in multiple jurisdictions

Regulatory Compliance and Defense

Cryptocurrency businesses face complex and evolving regulatory requirements. We help crypto companies navigate compliance challenges and defend against regulatory investigations.

Regulatory areas we cover:

  • FinCEN registration and reporting requirements

  • State money transmitter licenses

  • SEC securities compliance

  • CFTC commodity regulations

  • Anti-money laundering (AML) programs

  • Know Your Customer (KYC) requirements

What You Can Expect

Realistic recovery prospects: Not all cryptocurrency can be recovered, but many victims recover substantial amounts when they act quickly and work with experienced counsel.

Transparent fee structure: We offer flexible fee arrangements including contingency fees for recovery cases and flat fees for regulatory compliance work.

Technical expertise: Cryptocurrency law requires understanding blockchain technology, smart contracts, and digital asset operations. Our technical background enables effective advocacy in complex crypto disputes.

Coordinated approach: We work with blockchain forensics firms, international counsel, and law enforcement to maximize recovery opportunities.

Frequently Asked Questions

Q: How quickly do I need to act after cryptocurrency theft? A: Immediately. Cryptocurrency moves fast, and delaying action significantly reduces recovery prospects. Contact us within hours or days of discovering theft, not weeks or months.

Q: Can you actually recover stolen cryptocurrency? A: Recovery depends on many factors including how quickly you act, whether the crypto was moved to exchanges we can reach, and whether the thieves can be identified. We've successfully recovered cryptocurrency in many cases, but each situation is unique.

Q: What if the exchange is based in another country? A: We work with international counsel and use treaty processes to pursue cross-border recoveries. The location of the exchange doesn't necessarily prevent recovery, though it may complicate the process.

Q: Is my crypto investment a security? A: This is a complex legal analysis that depends on the specific facts of how the crypto was marketed, sold, and operates. Cryptocurrencies may be classified as securities (regulated by the SEC), commodities (regulated by the CFTC), or other categories depending on factors like decentralization, transaction context, and investor expectations. State regulations also apply in many cases. The classification affects which legal protections and remedies are available.

Q: How long do I have to file a lawsuit? A: Statutes of limitations vary depending on the type of claim and jurisdiction. Cryptocurrency cases often involve short deadlines, so it's important to act quickly after discovering fraud or theft.

Q: What if I can't afford blockchain forensics? A: We work with reputable crypto tracing companies that sometimes defer fees until recovery, and we can evaluate whether the potential recovery justifies the investigation costs. The cost of professional tracing is weighed against the potential recovery in each case.

Resources for Crypto Fraud Victims

The FBI's Internet Crime Complaint Center at ic3.gov accepts crypto fraud reports. The SEC's investor.gov has information about crypto investment fraud. The CFTC's smartcheck.gov provides resources about commodity fraud. Professional blockchain analytics firms publish research about crypto crime trends that can be helpful in understanding recovery prospects.

Related Individual Services

Our cryptocurrency litigation practice integrates with our other victim-focused legal services:

For institutional investors, cryptocurrency businesses, and investment funds facing complex commercial disputes, see our Institutional Cryptocurrency Litigation Services.

Take Action Today

Cryptocurrency moves fast, and so do the criminals who steal it. The sooner you act, the better your chances of recovery. Don't let crypto scammers get away with your hard-earned money.

Contact Gabriel Vincent Tese, Esq. at Spector Gadon Rosen Vinci, PC (gtese@sgrvlaw.com) today for a confidential consultation about your cryptocurrency case.

We also represent institutional investors, investment funds, and cryptocurrency businesses in complex commercial disputes involving high-stakes portfolio losses, contractual breaches, and sophisticated business relationships. See our Institutional Cryptocurrency Litigation services.

Remember: Just because cryptocurrency is new doesn't mean old laws don't apply. Fraud is fraud, theft is theft, and you have legal rights to recover your losses.