![]() Examples include crypto 401(k)s and social media accounts connecting to crypto wallets. There are ongoing changes within the crypto space which may further improve transparency. The State/Federal jurisdictional rules can help practitioners navigate the division of assets or reimbursement claims. Once prepared, the reports can then be used in conjunction with the other assets and liabilities in the case to facilitate a property settlement, assess the costs/risks of transferring the crypto assets, and understand the recurring income (if any). These reports will help clients understand the flow of funds and remaining balance(s), location of the transactions, accounts receiving the funds, who controlled the assets, and more. ![]() Often, forensic analysts will trace the transactions and prepare balance sheets, income statements, and “statements of crypto flows”. ![]() This process may also uncover potential tax liabilities from prior transactions, which add to the complexity of the case (see further discussion below). Regardless, the tracing of these transactions may be expensive and ultimately unnecessary if the funds cannot be seized at the end of the day. While the particulars of these investigations are beyond the scope of this article, the discovery process has improved through a combination of tax disclosures, increasing number of exchanges, and widespread acceptance. Each of these are discussed below.įinding crypto data is just the beginning, and often involves a separate forensic engagement with qualified analysts to help identify transactions and remaining holdings. This article explores the considerations and strategies to help resolve these types of cases during times of uncertainty, including financial forensics, asset divisions, income, taxes, and other topics. For practitioners involved with crypto-litigation, however, it just further complicates a complex subject matter. ![]() For many, this news may bring a feeling of JOMO (Joy of Missing Out). The cryptocurrency market is down approximately 57 percent for the year as of the time of this writing. ![]()
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