Cryptocurrency: When Do You Need to Hire a Lawyer? 

Written By Alla Levin
February 03, 2022

Cryptocurrency: When Do You Need to Hire a Lawyer?

As cryptocurrencies become more popular, especially Bitcoin, there is an increase in sophisticated hacking techniques to steal them. Crypto investment experts believe that the main reason for the surge of cryptocurrency lawsuits is that people don’t know how their crypto wallets work and aren’t taking security measures (like encrypted back-ups) against theft. An experienced Cryptocurrency Lawsuit Lawyer can help in these situations.

What is a Cryptocurrency?

A cryptocurrency is a digital currency built on cryptography and decentralized to control virtual funds. It has been slowly growing and gaining mass adoption in exchange rates, market capitalization, and individual units over the past several years.

The first, most popular, and well-known cryptocurrency is Bitcoin. It was the first cryptocurrency created in 2009 and has since grown exponentially as a form of exchange, valued by many as an investment vehicle and mined for its inherent security features.

When Do You Need a Cryptocurrency Lawyer?Cryptocurrency When Do You Need to Hire a Lawyer

It is advisable to contact a Cryptocurrency Lawsuit Lawyer if you have been a cryptocurrency hacking or fraud victim. If not done so, there might be many difficulties filing your claim.

In some cases, courts don’t recognize cryptocurrency, thus making it difficult to attach any value to them. Here are the instances when you need an expert on your side:

Cryptocurrency lawsuit lawyer: Hacking

Investors usually store cryptocurrencies in online wallets and exchanges, which can be hacked and broken into. If you have been the investment victim of a cryptocurrency hack, several things can help your case.

The first is to report it to the police and gather as much information as possible for evidence; the more fraud-related proof you have, the better chance you will succeed with your claim. The second is to find an expert witness who will testify on your behalf about your losses.

Finally, you need to find a cryptocurrency lawyer who can help you file the case in court. You have to value the loss of your cryptocurrencies because there are instances where courts do not recognize them as legal tender.

Exchange Fraud

If an exchange hack occurs and the company refuses to reimburse the customers, it is possible to take them to court and file a lawsuit. This step requires an expert witness who can testify that the loss is due to the company’s negligence in taking adequate security measures.

Taxation Issues

The IRS has recently clarified that they will treat cryptocurrencies as property rather than currency. This concept means that you will be required to pay capital gains tax for buying or selling cryptos. If you have not adequately filed your income taxes, the IRS can penalize you.

A cryptocurrency lawyer can make sure that you are paying the right amount of money and help defend any claims filed by them against you. The crypto lawsuit attorney will also advise you on the current tax laws and help you file your papers properly.

Cryptocurrency lawsuit lawyer: wrapping up

If you need legal representation in a cryptocurrency lawsuit, it is best to hire an expert cryptocurrency lawyer who can guide you through the entire crypto lawsuit process and help you file your claim successfully. You can find these lawyers online or ask for referrals from friends and family members.

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