Who may be asking and what they can do
Several agencies investigate digital asset activity, and their powers differ. The SEC and the CFTC bring civil enforcement actions, federal criminal cases are brought by the Department of Justice, and state prosecutors can bring their own. New York's Department of Financial Services licenses and supervises many virtual currency businesses, and the Attorney General has its own investigative authority. An investigation may focus on whether a token was sold as an unregistered security, whether a platform needed a license, whether anti-money laundering controls were adequate, or whether specific people engaged in fraud or market manipulation. Federal enforcement priorities in this area have shifted in recent years, so the current posture of a particular agency should be checked rather than assumed.
Preserving and organizing the record
Once an inquiry arrives, preserve everything that might be relevant, including chat platforms such as Telegram, Discord, Signal, and Slack, along with code repositories and wallet records. Do not delete messages or close accounts, even ones that seem unrelated, because loss of records can become a separate problem. Identify who controlled which wallets and keys, and who made decisions about token sales or treasury movements. Employees and contractors may receive separate contact from investigators, and the company should think about whether they need their own counsel. Speaking to an investigator without preparation is risky, and knowingly giving a false answer can itself be a crime.
Planning the first response
Early on, we try to learn what the agency is focused on and whether you are being treated as a witness, a subject, or something more. We negotiate the scope and timing of document productions where possible and set up a review process that protects privileged material. For companies, we consider whether an internal investigation is needed and who should lead it. For individuals, we discuss whether a parallel civil and criminal track is possible and how that affects what to say and when. The goal at this stage is a response that is accurate and complete without volunteering more than the request calls for.
