Agencies and theories
Digital asset matters can draw interest from several authorities at once. The SEC may examine whether a token was offered as a security, and the CFTC treats some digital assets as commodities and can pursue fraud or manipulation. Federal prosecutors bring criminal cases, including fraud, money laundering, and operating an unlicensed money transmitting business. Virtual currency businesses serving New Yorkers are generally licensed or chartered and supervised by the state Department of Financial Services, and the Attorney General has enforcement tools of its own. Federal policy toward digital assets has shifted significantly, including new stablecoin legislation and changing agency positions, so the current posture needs checking in each matter.
Preserving the technical record
Blockchain matters depend on technical evidence: on-chain transactions, smart contract code and its history, wallet records, internal chats, and public statements in community channels. Much of the on-chain record is permanent, but off-chain messages and servers may not be. A litigation hold should cover messaging platforms and code repositories, and no one should delete accounts, channels, or repositories once an inquiry is anticipated. If systems have been compromised, keep them in their current state and isolate them from the network rather than shutting them down, and get forensic help before going further.
Approaching the defense
Early decisions include whether individuals need separate counsel, whether to engage regulators through a meeting or a written submission, and how to respond to subpoenas that ask for large volumes of data. Questions such as whether a token is a security, or whether a developer actually controlled the funds involved, often shape the case. Public statements by the project or company should be reviewed with the legal strategy in mind. If an exchange has frozen tokens or the government has seized them, the route to seeking their return depends on who acted and on what basis. In our first discussion we identify the authorities involved, the deadlines, and the immediate preservation and communication steps.
