When you make an investment or transaction in Bitcoin, challenging issues can arise. There can be problems involving fraud, deception, the mismanagement of virtual funds, or trouble involving inferior goods or late payments. You may need to take your case to court to get justice. From his law office in Orange County, Bitcoin attorney Roger E. Naghash serves clients across California and throughout the United States. Enlist his experience in your service.Fraud and Deception Can Affect Virtual Currency
Because of the irreversibility of a digital currency transaction, a person might take this type of payment with no intent to deliver goods or services. For over a century, economies have been plagued with pyramid investment schemes. People who orchestrate such schemes may be attracted to Bitcoin because it could help conceal the transactions involved. The Securities and Exchange Commissions (SEC) has gone out of its way to issue warnings about Ponzi schemes that could plague virtual currency. The SEC has also begun prosecuting people believed to be orchestrating these criminal actions.
Since Bitcoin is sometimes held as an investment, problems can arise involving price manipulation. These “pump and dump” schemes can be hard to detect and prove because of the anonymity features distinctive to digital currency.Mishandling of Bitcoin Funds
Sometimes a party in a digital currency transaction loses the Bitcoin entrusted to them. This type of situation has happened in a number of high-profile cases, from the scandals that rocked Mt. Gox to individuals being careless with their computer equipment.
You might have entrusted Bitcoins to an exchange that lost them, or perhaps you were involved in a transaction where an escrow agent lost your virtual currency. When you trust another person to hold onto your valuable assets for you, you have a right to try to recover for your losses.
However, the unusual way in which the block chain ledger works and the built-in anonymity features of digital currency can make it difficult to prove that your funds were in another person’s custody. Evidence of the transaction may still be found by investigating the block chain ledger, examining emails and other correspondence, and bringing in expert witnesses to shed light on the situation.Transaction Disputes Involving Digital Currency
Even when two parties enter into an agreement with good intentions, a transaction can still encounter problems. A number of issues can trigger disputes, including misunderstandings about product specifications, delays in getting the goods or services to the customer, or payment problems. Bitcoin’s price volatility can also affect the viability of a transaction. When wild fluctuations happen, parties may feel that the intended deal is no longer attractive to them. This sudden change in underlying terms can trigger efforts to breach the contract. When resolving digital currency disputes, anonymity issues can create a general mistrust and make it hard to hold the other party accountable.
In any lawsuit involving Bitcoin, there are additional problems that need to be solved. One must present a technically complex transaction to a judge or jury who is not familiar with key underlying concepts. Furthermore, the block chain ledger is often a factor, requiring an explanation that isn’t easy to make. Anonymity issues can cloud the entire case, and additional evidence and expert witnesses may be examined in order to shed light on the situation.Contact a California Attorney Skilled in Virtual Currency Litigation
When you are involved a digital currency dispute, you need an attorney with the knowledge and experience to fight for you. Bitcoin lawyer Roger E. Naghash assists clients in Southern California and far beyond. If you need a knowledgeable source of legal guidance, contact us online to request a free initial consultation or call us at 949-955-1000.