Issues Around Cryptocurrency and Digital Assets That Litigators Need to be Mindful Of

March 24, 2022 2:15pm

Stefan Kühn
Head of Risk Advisory Services, Partner
BDO (Switzerland)

Mona Vaswani
Milbank LLP (UK)

Jane Colston
Brown Rudnick LLP (UK)

The area of crypto is a fascinating one as it is very new, and throws up the same kinds of issues and challenges litigators face every day. When it comes to crypto frauds, the blockchain may actually be of great help to in the context of asset-tracing and enforcement – as most transactions will be publicly viewable. This allows investigators and litigators to follow transfers of crypto from wallet to wallet; and ultimately into central exchanges such as Binance and Kraken, etc.

It is then that litigators can break out the familiar toolkit of disclosure and freezing orders to secure the misappropriated funds and uncover who may be behind the wrongdoing. The use of technology is another key part to this, as there are companies out there that can help automate the necessary review and searches of the blockchain. The technology can aggregate transactions more quickly and enable us to identify patterns; and pinpoint the source and destination of misappropriated assets.