Cryptocurrency Litigation Attorneys in New Jersey
Since the first bitcoin was mined in 2009, the cryptocurrency industry has grown by leaps and bounds. As with any new technology or way of doing business, widespread adoption leads to a dramatic increase in the number of legal issues and questions that users must address.
As one of the first law firms in New Jersey to have successfully represented crypto and blockchain clients in litigation, Andrew Dressel and Chris Malikschmitt have become the go-to legal advisors for many serious investors and business owners in this space.
We represent a number of partners in digital asset investment funds and crypto mining operations, as well as businesses developing new uses for blockchain technology and emerging digital assets like non-fungible tokens (NFTs). Our clients count on us to advise them on issues as varied as business formation, operational issues, and dispute resolution. They know we have been able to take the basic principles of these well-established areas of law and bend them to fit their needs as the crypto industry evolves.
Blockchain and cryptocurrency are industries where things change on a dime. New regulations are promulgated, old regulations are suddenly re-interpreted. The assets at issue in a particular matter may suddenly balloon in value, or, alternatively, become valueless. Attorneys who represent clients in the blockchain and cryptocurrency industries need to have flexible, proactive approaches to legal issues. Well-thought-out strategies can be undermined when there is a price jump in an asset, or some other sudden development, and blockchain counsel must be ready to pivot and adapt. The cryptocurrency attorneys and blockchain lawyers at Dressel/Malikschmitt stay up to date on recent litigation in the crypto-industry and monitor new regulatory developments, as well as developments in the blockchain industry generally, in order to provide informed advice to their clients.
Cryptocurrency Contract Disputes
Contract law is the foundation of many other areas of the law, so it should be no surprise that contracts play a key role in the crypto industry. For all the talk that “code is law,” you cannot code your way into every agreement, or out of every dispute. That’s where we come in.
In the fast-paced and ever-changing world of digital currency, contracts are often thrown together quickly, leading to disagreements and potential litigation. Disputes within the crypto arena often arise when parties have disagreements about how, when, and if, a contract was formed and whether all parties have completed their individual commitments. Varying interpretations of contracts also lead to disputes. These are the same issues that pop up in other industries, even though they may look a bit different in the crypto space. Dressel/Malikschmitt’s experienced team knows how to look past the hype and identify the root cause of cryptocurrency contract disputes so they can be quickly and definitively resolved.
Cryptocurrency Investment Disputes
Dressel/Malikschmitt partners Chris and Andrew have helped to resolve several disputes between the co-founders of — and initial investors in — cryptocurrency enterprises such as mining operations and digital asset investment funds.
Some of the cases we have counseled clients on have involved:
- Passive investors who allege there were improper disclosures at the outset of a venture or who feel proceeds are not being distributed properly.
- Users of digital asset exchanges and other digital asset services who are locked out of funds, lose funds via hacking or otherwise negligent security procedures, or are charged excessive fees to transfer or convert their digital assets.
- Disputes concerning the governance of cryptocurrency mining operations.
- Internal investigations of cryptocurrency operations.
- Claims of consumer fraud under state consumer fraud laws related to the sale of digital assets or other digital asset-based enterprises.
Chris and Andrew are well versed in these types of cryptocurrency disputes and are ready to help tackle the toughest cases. They know that such disputes are often the result of the excitement and rush to get going at the outset of a new project and are typically resolved by looking at the formational agreements, contemporaneous communications, and other indications of the parties expectations.
Ownership and Partnership Disputes
The way the crypto industry has developed has incentivized a rush to be first. In decentralized governance structures, early adopters can amass a large enough stake to influence a currency or company, if not bend it to their will.
The frenetic pace of growth, and corresponding fear of missing out, has meant that many partnerships and business relationships are created quickly. Often without much attention to the details contained in the contract that will control what happens as their enterprise grows… or fails. If you have made a significant investment in digital currency, and are now in an ownership dispute, the experienced attorneys at Dressel/Malikschmitt can help you figure out what your options are.
Business and Regulatory Advice
Blockchain businesses often live by the same principles of decentralization that drive blockchain technology. From an organizational standpoint, this can be good, in that there are not multiple layers between attorneys and management. However, it can also pose difficulties for the decision-making process by removing the layers of review of business and legal decisions that more traditional organizations may engage in. Dressel/Malikschmitt can help develop legal best practices within your organization in order to help management form sound strategies that avoid legal issues, and potential regulatory investigations, which could jeopardize assets, investors, or management.
Regulatory Developments in Cryptocurrency
Of particular importance are regulatory developments. Your business needs counsel that will stay abreast of these issues. Innovation in the crypto-asset class well outpaces the ability to regulate, and regulators are constantly changing their requirements and approaches in an effort to keep up with this innovation. Moreover, the cross-border nature of many blockchain transactions also creates a patchwork of regulations for blockchain-based businesses to consider. Dressel/Malikschmitt’s attorneys monitor regulatory changes and are prepared to advise our clients on key regulatory developments.
The Securities and Exchange Commission and Commodity Futures Trading Commission (in addition to the IRS) are increasing their efforts to regulate cryptotokens, blockchain assets and blockchain-based securities. Blockchain-based assets are also increasingly catching the attention of law enforcement agencies, with increased efforts to unmask crypto-transactions which may be linked to illicit activities. If you are under investigation or are concerned that may become involved in a government investigation, concerning blockchain-based assets, you need legal advice from a lawyer who understands blockchain and the applicable law. It is important to work with attorneys who can effectively interface with these enforcement agencies to protect the client and its investors and owners. The attorneys at Dressel/Malikschmitt are prepared to provide that advice and aid with responses to investigations by regulatory agencies, law enforcement or even audits by investors.
Digital Currency Class Action Defense
As government regulators catch up with the crypto market, Dressel/Malikschmitt expects to see an increase in the number of cryptocurrency class actions filed on behalf of investors, clients, and users.
In large-scale cases such as these, you need attorneys who are comfortable in the crypto arena, but also have experience litigating class actions. Andrew and Chris are experienced litigators who have practiced high-end civil litigation at some of the most prominent law firms in the country, taken multiple crypto suits to court, and managed nationwide class actions. They are uniquely qualified to take on these nuanced cases.
Dressel/Malikschmitt LLP has led successful representations in litigation, internal investigations and provided general legal advice for parties within the blockchain industry. Our attorneys are prepared to offer advice and representation to you or your business regarding:
- Government investigations
- Mining Pool Agreements
- Shareholder Agreements
- Criminal liability
- Subpoena responses
- Investor dispute resolution
- Governance dispute resolution
- Internal investigations
- Contract dispute resolution
- Drafting of agreements with investors or outside service providers
- Entity formation documents
Blockchain businesses and their investors face a quickly changing set of emerging legal concerns and questions. Dressel/Malikschmitt attorneys are informed and experienced in cryptocurrency, digital asset, and blockchain-related legal matters. To contact the attorneys at Dressel/Malikschmitt LLP, call us at (848) 202-9323, or submit the Contact Us form for a free consultation.
Attorneys have a reputation for being deal killers who are always saying “no.” But at Dressel/Malikschmitt, we work hard to help our clients get to a “yes” when they are entering a new business venture.
This means conducting in-depth research into the business plans or term sheets our clients and their potential partners have drawn up, reviewing documents that our clients are being asked to sign, and conducting due diligence on crypto businesses (and other business) on behalf of our clients.
We identify potential liabilities and point out various regulatory hurdles that must be cleared, and explain what options are available to reduce the risk without endangering the underlying deal. We always work to find solutions that will allow our clients’ plans to move forward because it isn’t our job to question their business judgment.
Dressel/Malikschmitt: New Jersey’s Experienced Cryptocurrency Counselors
Crypto and the blockchain are changing the way many businesses operate, or at least thinking about securing assets. The Dressel/Malikschmitt team is embracing this change, and helping our clients navigate the new opportunities and challenges presented.
We work with our clients in New Jersey, and across the country, to help them make deals, resolve disputes, and push the envelope. Contact our experienced team today to discuss your legal needs. Fill out our contact form or call us at (848) 202-9323.