Current Trends in Criminal Law: The Mechanics of Virtual Currency, From Legitimate Use to Misuse

As the use of virtual currency and related technology continues to increase, the interests of law enforcement and regulators in virtual currency continues to evolve. Virtual currency is not inherently illicit and it is used by legitimate consumers every day to conduct legal transactions. Nonetheless, the supposed anonymous nature of virtual currency attracts simultaneously the attention of both individuals seeking to further illegal activities and the government.

This webcast, presented by Ballard Spahr partners Marjorie Peerce and Peter Hardy, focuses on the regulatory requirements related to legitimate use of virtual currency – including under the Bank Secrecy Act, the federal securities laws, and the tax laws. They will discuss the issues which may confront practitioners representing clients caught up in such cases, from investigation to sentencing as well as  the tools available to law enforcement interested in investigating and prosecuting the alleged misuse of virtual currency to further underlying criminality. Viewers will take away from the course the fact that virtual currency presents legal issues which range from unique challenges to those typical in any criminal case.  

Learning Objectives:

1. Review the mechanics of virtual currency, related enforcement actions, and the investigative techniques of the government
2. Understand how and why the government may employ certain criminal statutes in cases involving virtual currency, including statutes against money laundering, drug distribution, terrorist financing, and ransomware
3. Comply with regulatory requirements potentially applicable to virtual currency businesses, including under the Bank Secrecy Act and the securities laws
4. Recognize the potential tax implications of virtual currency, for both proper tax reporting and to avoid potential tax evasion
5. Know the status of enforcement and regulatory efforts by the States
6. Explore potential pretrial and trial issues for both the defense and the government
7. Consider the possible consequences of post-conviction sentencing and forfeiture