{"id":352036,"date":"2023-12-02T14:53:47","date_gmt":"2023-12-02T19:53:47","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/criminal\/criminal-charges\/cryptocurrency-theft.html"},"modified":"2023-12-02T14:53:47","modified_gmt":"2023-12-02T19:53:47","slug":"cryptocurrency-theft","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/criminal\/criminal-charges\/cryptocurrency-theft.html","title":{"rendered":"Cryptocurrency Theft"},"content":{"rendered":"\n
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Cryptocurrency Theft<\/h1>\n
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\n By Samuel Strom, J.D.<\/a> | Legally reviewed by Rhonda Earhart, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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Key Takeaways<\/h2>\n

Cryptocurrencies aren’t physical items, but they can be stolen like other types of digital assets. Cryptocurrency theft ranges from individual instances to complex, high-profile schemes.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n

Cryptocurrencies<\/a> are virtual tokens that can be used to buy things. Resembling money, they attract the attention of computer-savvy thieves. Cryptocurrency exchanges allow people to buy and sell Bitcoin, Ethereum, and other digital coins.
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Read on to learn more about cryptocurrencies, cryptocurrency theft, and how it can impact you. But if you are suspected of a financial crime like fraud or theft, find a lawyer<\/a> for your defense.<\/p>\n

What Is Cryptocurrency?<\/h2>\n

Cryptocurrencies represent virtual currencies. They are a digital representation of value. Cryptocurrency owners may exchange their cryptocurrencies for other things of value.<\/p>\n

Bitcoin is perhaps the most well-known cryptocurrency. Technically, Bitcoin is an \u201copen source peer-to-peer payment system." Bitcoin’s<\/a> currency is also known as Bitcoin. The payment system records an individual Bitcoin’s transactions. The Bitcoin blockchain is public to all Bitcoin owners and is used to verify ownership.<\/p>\n

The Financial Industry Regulatory Authority<\/a> (FINRA) provides more information about Bitcoin.<\/p>\n

The Problem of Cryptocurrency Theft<\/h2>\n

The rise of cryptocurrency brought with it the rise of cryptocurrency crimes. Thieves steal over a billion dollars<\/a> worth of Bitcoins and other virtual currencies each year. This includes hacks, scams, and fraudulent "initial coin offerings."<\/p>\n

In several well-publicized cases, hackers have burglarized cryptocurrency exchanges. In one instance, thieves reportedly<\/a> stole over $400 million of cryptocurrency. Cybercriminals can be prosecuted for cryptocurrency fraud<\/a>, computer crimes<\/a>, and other offenses.<\/p>\n

What About Insurance?<\/h2>\n

Can insurance play a role here? Some insurers have begun offering policies<\/a> to protect against digital currency heists. These risk-lessening products may help spur the growth of the budding cryptocurrency industry. Other insurers are hesitant to enter this volatile and unsettled new market.<\/p>\n

Who’s in Charge?<\/h2>\n

Who creates the rules on the cryptocurrency frontier? Most state and local governments have taken a hands-off approach to preventive regulation. But there are noteworthy exceptions. New York<\/a>, for example, imposes a licensing requirement on cryptocurrency exchanges and other digital-coin businesses.<\/p>\n

At the federal level, the Securities and Exchange Commission (SEC) has begun to wade<\/a> into regulating some aspects of this emerging financial area. Through various agencies, the federal government has also issued warnings about the risks cryptocurrencies pose, particularly from an investment standpoint.<\/p>\n

Commodity Futures Trading Commission<\/h2>\n

The United States Commodity Futures Trading Commission<\/a> (CFTC) was created in 1974. Its mission is to promote \u201cthe integrity, resilience, and vibrancy of the U.S. derivatives market through sound regulation." It works with the Department of Justice<\/a> (DOJ) to investigate the following crimes, among others:<\/p>\n