When financial technology changes, lawmakers can be slow to catch on and legislate. It leaves ample opportunity for anyone looking to exploit the system.
People have been committing fraud ever since money was invented, if not before. Hence it is no surprise that some people have tried to make money illegally via cryptocurrency and non-fungible tokens (NFTs).
The Attorney General will prioritize prosecuting white collar crime
Many believe this is quite overdue, with the number of prosecutions constantly dropping since 2011 and plummeting during Trump’s presidency. Last month the federal authorities arrested an NFT trader on accusations of wire fraud and insider trading. He could face up to 20 years in prison for each charge if convicted.
In many ways, not much has changed. The accusation is that he used confidential information to buy something early at a low price and then sell it for much more. People in the financial industry have been doing that for years. The only real difference is the medium in which the money is stored.
If you trade digital currencies, it is crucial to abide by the kind of laws that apply to any kind of trading. If you would not do something with paper money or online accounts, then do not consider doing it with digital currency. Just because it is harder to trace cryptocurrency movements does not mean the authorities cannot do so. They may even change the laws to make it easier for themselves.
As with any crime, there will always be innocent people wrongly accused. If this happens to you, seek legal help to investigate your defense options and protect your freedom.