Cryptocurrency fraud has become a serious and growing category of commercial litigation. As digital assets have become a more common medium for business transactions, they have also attracted fraudulent schemes targeting contractors and businesses that receive cryptocurrency as payment for goods or services. When that payment turns out to involve fraud, recovering the loss requires attorneys who understand both the evolving legal landscape around digital assets and the litigation strategies needed to pursue recovery.
Mandelbaum Barrett PC attorneys Jacqueline Greenberg Vogt and Steven W. Teppler achieved a significant court-recognized result for a contractor who had been defrauded of cryptocurrency. The matter required sophisticated commercial litigation strategy combined with technical understanding of how cryptocurrency transactions work and how they can be traced and challenged in court. Both attorneys are members of the firm’s corporate law and commercial litigation practices, handling complex business disputes including matters involving digital assets and electronic evidence.
Cryptocurrency Fraud in Commercial Transactions
Contractors and businesses that accept cryptocurrency as payment face risks that differ meaningfully from those associated with traditional payment methods. Cryptocurrency transactions are generally irreversible once confirmed on the blockchain. A payment made using stolen credentials, a fraudulent wallet, or through misrepresentation of asset value cannot be reversed through a bank or payment processor the way a fraudulent check or unauthorized credit card transaction might be. Recovery depends on civil litigation and, where criminal conduct is involved, coordination with law enforcement.
Common forms of cryptocurrency fraud affecting contractors include payments made with improperly obtained funds, misrepresentation of the type or quantity of cryptocurrency transferred, and manipulation of transaction records. Each scenario may require a different legal strategy for pursuing recovery.
Legal Remedies for Cryptocurrency Fraud Victims
Civil litigation is one of the primary mechanisms for recovering losses from cryptocurrency fraud. Courts in New Jersey and New York have recognized cryptocurrency as a form of property and have applied fraud, conversion, breach of contract, and unjust enrichment theories to disputes involving digital assets. Blockchain analysis tools can trace cryptocurrency transactions and in some cases identify the recipient wallet, providing evidentiary support that can make the difference in litigation.
According to the Federal Trade Commission, cryptocurrency fraud losses have grown substantially in recent years as digital asset transactions have become more common in commercial settings. Businesses and contractors who receive cryptocurrency should understand the legal tools available to them when fraud occurs.
About Jacqueline Greenberg Vogt and Steven W. Teppler
Jacqueline Greenberg Vogt focuses on business litigation and dispute resolution, bringing extensive commercial litigation experience to complex disputes. Steven W. Teppler has a background in technology law and digital evidence that is directly applicable to cases involving cryptocurrency, electronic records, and emerging technology matters. Their combined capabilities in this matter reflect the firm’s capacity to handle litigation at the intersection of traditional commercial law and digital asset disputes.
Contact Mandelbaum Barrett PC for Commercial Litigation Guidance
If your business has been the victim of fraud involving cryptocurrency or other digital assets, the commercial litigation team at Mandelbaum Barrett PC can help you evaluate your options and determine the appropriate legal strategy.
Reach out through our contact page to speak with our team. We are here to help you understand your rights and pursue the remedies available under the law.