Cryptocurrency Litigation and Enforcement

Digital currencies tumbling in value. Cryptocurrency exchanges collapsing and filing for bankruptcy. Customers with cryptocurrency accounts unable to access and retrieve funds from those accounts.

These are only a few of the headlines that have dominated the blockchain industry over this past year.

With the rapid growth and increasing use of Bitcoin and other cryptocurrencies, such as Ethereum, Litecoin, XRP (Ripple), and Cardano, to name but a few, new and complex legal issues in these innovative and disruptive areas continue to surface every day. Moreover, as businesses and individuals continue to grapple with questions about what cryptocurrency assets are and how they should be treated in existing and developing legal frameworks, disputes are likely to become even more common.

At Salazar Law, we help our clients navigate the complex blockchain industry. Whether guiding clients through its evolving regulatory and compliance landscape; representing clients in their claims against other investors, cryptocurrency exchanges, and digital asset providers; or assisting sophisticated creditors involved with distressed crypto-focused companies, we are prepared to assist our clients with their legal needs in the cryptocurrency arena.

Salazar Law provides the following legal services related to cryptocurrency (and other financial concerns):

Litigation & Enforcement

• Breach of contract, breach of fiduciary duty, and breach of implied covenant of fair dealing claims arising from (i) investors vs. cryptocurrency exchanges, decentralized finance (DeFi) platforms, and other digital asset providers; (ii) the transfer or sale of digital assets; (iii) implementation and use of smart contracts, etc.
• Fraud in the inducement and misrepresentation claims arising from false and misleading statements made to investors in connection with Initial Coin Offerings (ICOs) or other cryptocurrency assets (e., cryptocurrency, tokens, etc.).
• Claims under Florida’s Securities and Investor Protection Act and Deceptive and Unfair Trade Practices Act arising from the offering and sale of unregistered securities, fraudulent price inflation of cryptocurrency asset, etc.
• Civil conspiracy and common law aiding and abetting claims arising from an entity’s (g., banks, venture capital firms, accounting firms, etc.) or individual’s (e.g., celebrity, athlete, etc.) rendering of assistance to cryptocurrency exchanges or decentralized finance (DeFi) platforms that defraud investors.
• Civil theft, conversion, and replevin claims arising from the hacking or unauthorized taking of cryptocurrency, tokens, or other digital assets.
• Shareholder derivative claims arising in connection with cryptocurrency startups, cryptocurrency investment funds, etc.
  
  

Liability Management and Restructuring

• Assisting sophisticated creditors involved with distressed cryptocurrency-focused companies, including in connection with potential acquisitions pursuant to the bankruptcy code and claims management in bankruptcy cases.
• Working with cryptocurrency-focused companies on potential out-of-court liability management transactions and in-court bankruptcy transactions.

The cryptocurrency and blockchain regulatory landscape is evolving rapidly across jurisdictions, requiring innovative and cutting-edge legal advisors. Should a dispute arise, you can rely on our highly experienced team of litigators with proven success in securing favorable outcomes for our clients. Whether you are just getting started in cryptocurrency or have deep industry knowledge, we at Salazar Law are here to assist you.