Crypto Advancements Stir Legal Work in Investigations, Asset Tracing

Today, there are more than 2,200 types of cryptocurrency in the global markets, and an estimated 34.6 million digital wallets in use. Along with its advancements, cryptocurrency has also stimulated a rise in scams, crimes, theft, and illicit financing. For legal counsel, this has introduced a new and rapidly growing practice area around litigation and investigations into cryptocurrency trading and transactions.

The legal industry is just scratching the surface of what is likely to become a significant body of work around cryptocurrency tracing and disputes. Regulators are driving some of these matters.

Agencies including the Securities and Exchange Commission are investigating suspected incidences of crypto fraud, and probing multimillion-dollar cryptocurrency and token securities offerings being launched by privately held and publicly traded companies. Litigation—between individuals and/or corporations—centered on cryptocurrency theft, ownership, and misuse is also on an…