Cryptocurrencies can be the subject of financial crimes

On Behalf of | Mar 14, 2022 | Fraud

Technology is always advancing, bringing with it change to the financial world as we know it. For example, cryptocurrency is becoming increasingly popular among many businesses and investors. However, as with other financial transactions, crimes involving cryptocurrencies can occur, mainly involving direct theft from exchanges or illegal scams.

Cryptocurrency theft

Most people obtain cryptocurrency by establishing an account that they then deposit funds in, which are then converted to cryptocurrency. This is referred to as an “exchange.” The exchange keeps the cryptocurrency for the use of the owner.

An exchange generally only holds as much cryptocurrency in “hot wallets” as is needed for customer transactions and is connected to the internet. As a safety measure, the remaining cryptocurrency is kept in “cold wallets” that are not connected to the internet. If there is a security breach of an exchange it could lead to accusations of theft, especially if the cryptocurrency owners cannot access their funds due to the breach.

Cryptocurrency scams

Many people lawfully use email as part of their cryptocurrency dealings. Sometimes information is needed from a cryptocurrency owner. However, one could be accused of operating a cryptocurrency fishing scam if they use email to obtain information that leads to the wrongful taking of cryptocurrency.

Many exchange platforms are online. However, it is essential that these platforms are not copied. Accidentally copying an exchange platform could lead to accusations of cryptocurrency scamming, especially if the cryptocurrency owners are somehow unable to withdraw their funds.

Protect yourself from accusations of cryptocurrency crimes

Many cryptocurrency dealings are done legitimately via email or online. Generally, these dealings allow the investor to access their funds. If for some reason an investor is unable to access their cryptocurrency funds it could lead to accusations of theft or illegal scams. If you are accused of such crimes, you will want to learn more about all your legal rights and options so you can make decisions that are in your best interests.