Experienced New York Cryptocurrency Attorneys Ready To Serve You
The so-called “cryptocurrencies,” such as Bitcoin, are a medium of exchange that constitutes a sort of virtual currency. Unlike conventional currencies, no government or bank issues cryptocurrencies. Instead, they rely on peer-to-peer networks to function. Many large companies now accept cryptocurrency as a legitimate payment method, and major trading markets exchange cryptocurrency for conventional currency.
Cryptocurrencies are by their nature distributed rather than centralized. Notwithstanding the distributed nature of cryptocurrency, New York is poised to serve as a global financial hub for cryptocurrency activities. The New York cryptocurrency lawyers at E. Stewart Jones Hacker Murphy are well positioned to serve your needs due to our years of relevant experience.
Opportunities and Dangers
Although the first cryptocurrency appeared in 2008, it did not become widely accepted until about 2015. In little over a decade, the appreciation of cryptocurrency has been phenomenal. Bitcoin, for example, began trading at $0.08 in 2010 but broke the $50,000 barrier in February 2021.
Is cryptocurrency experiencing a bubble? Or is it simply an innovative solution to a demand that has been growing for decades? We’re betting on the latter, but not without a healthy dose of caution.
The management and evaluation of cryptocurrencies generates both opportunity and danger, as well as a multitude of compex legal issues. In many ways the cryptocurrency revolution brings to mind the widespread use of derivatives in the 1980s—you can make a fortune out there, but you’d better know what you are doing. Beware—when it comes to cryptocurrencies, some of the greatest fraud opportunities arise from the sheer complexity of the system.
The Weaknesses of Cryptocurrency Transactions
Notwithstanding the efficiencies and conveniences of the cryptocurrency revolution, virtual currency suffers a number of disadvantages, including:
- You cannot automatically reverse payments. The only way to get your money back from an unwilling vendor is to file a lawsuit. You will almost certainly need a New York cryptocurrency attorney to win.
- Hackers love cryptocurrency exchange platforms. Many people have lost fortunes this way.
- Fraud is even more common in cryptocurrency transactions than it is in other types of transactions.
- The FDIC does not protect cryptocurrency investments, at least for now.
Moreover, the values of most cryptocurrencies, including Bitcoin, fluctuate wildly. This instability has caused some to question whether cryptocurrency investment is more akin to gambling than it is to traditional investing.
How We Can Help
Stewart Jones Hacker Murphy can help you handle the complex legal issues that arise from cryptocurrency transactions.
Fraud Prevention and Litigation
Cryptocurrency fraud, unfortunately, comes in a variety of different flavors:
- Blackmail: Fraudsters often seek out damaging information about your company or its personnel and then demand “hush money” in cryptocurrency.
- Imposter cryptocurrency investment websites: Always look for https in the address bar as well as the small lock icon near the address bar to confirm the legitimacy of the site. Be especially careful to spot legitimate-looking websites that substitute a 0 (zero) for an “O” in the URL. If the site sends you to another website for payment, check that site too.
- Fake cryptocurrency apps: These have been found on Google Play and the Apple App Store.
- Bogus ICOs (Initial Coin Offerings): This scam is so common that Bloomberg estimates that over 80% of ICOs are scams.
This is only the tip of the iceberg because new scams are being invented every day. An experienced New York cryptocurrency lawyer can perform due diligence to help you identify scams in advance and to fight it out in court if necessary. If someone accuses you of fraud, we can help you defend your interests and your good name.
Hosting Agreement Contract Negotiation
Cryptocurrency mining is a complex endeavor, and if you are to engage in it you’re going to need access to secured mining farms (a set of dedicated computers that mine cryptocurrencies). That means you are going to need a hosting agreement.
These agreements are complex and typically full of legal jargon. Every sentence has consequences, and a single misplaced comma could have disastrous results. The New York cryptocurrency attorneys at E. Stewart Jones Hacker Murphy can help you negotiate favorable terms and turn them into airtight agreements that fully protect your interests.
One way you can obtain cryptocurrency is to buy it. You can also mine it and trade for it. Mining and trading allow you to increase your cryptocurrency holdings without losing any direct monetary value. Mining cryptocurrency means verifying transactions for the computer network that generates it, while trading cryptocurrency works a lot like trading traditional currency. Mining, trading, and buying cryptocurrency all generate critical legal issues that an experienced New York cryptocurrency attorney can help you resolve.
Contact Us Today
If you have suffered cryptocurrency fraud or if someone has accused you of cryptocurrency fraud, contact experienced New York cryptocurrency lawyers at E. Stewart Jones Hacker Murphy immediately. You can schedule a free initial consultation by filling out our online contact form or by telephoning one of our offices in Albany, Colonie, Saratoga, Schenectady, or Troy.