Miami Security Investigations of Cryptocurrency Lawyers

Issues in the Security Investigation of Cryptocurrency

As cryptocurrencies become more popular, the scrutiny of federal investigators has increased. Cryptocurrencies could be used to fund criminal activity and commit fraud. While the unregulated nature of crypto can make the currency more vulnerable to being a part of a crime, the use of crypto might also result in criminal allegations that do not stand up in court.

The Law Offices of Paul D. Petruzzi have built a deserved reputation for studious legal preparation and a tough-minded fighting spirit. 

Call (305) 330-3905 or contact us online today to set up a free consultation. 

What Happens in a Security Investigation of Cryptocurrency?

Cryptocurrency is transferred electronically through a blockchain. A security investigation of allegedly illegal monies through this blockchain is what constitutes a security investigation.

The investigator will seek to trace transactions back to a specific address, and then attempt to use information collected by the cryptocurrency exchanges to find out to whom the address belongs. This information might require a subpoena or search warrant to get. 

Probable Cause Is Not Required in a Security Investigation of Cryptocurrency

In most cases, investigators who need a subpoena and search warrant must have probable cause to get a judge to sign off on their request. 

But the 2020 case United States v. Gratkowski ruled that because the blockchain was public, the government was entitled to use their technology to extract needed information from it without having probable cause.

Thus, a defendant would not have to know they were even under investigation. Unless the authorities conducting the inquiry feel the need to get the target of their investigation in for an interview or serve a warrant on one’s business or home, it’s possible the investigation could go on for years, unbeknownst to the target.

Defending someone against charges they don’t know exist might be impossible, but a proactive lawyer can think ahead and develop a system of compliance that can help protect their client in the event of an investigation.

The Law Offices of Paul D. Petruzzi P.A. can be reached at (305) 330-3905 or online. We offer free consultations and payment plans.