Few people could dispute that the popularity of cryptocurrencies have skyrocketed in recent years. Some sources report that even President Donald Trump has acquired a substantial holding in Bitcoin.
Crypto can be sent anywhere in the world in seconds, with no bank account, no identification, and no middleman standing in the way. It’s not hard to understand why some people get excited about it. However, other less-savory individuals are drawn to crypto because that mix of speed and secrecy has turned cryptocurrency into a new frontier for fraud.
Cryptocurrency is often regarded as a pioneering advancement in the financial world and is often touted for its ability to move money across borders with both speed and anonymity. These very benefits are the reason it has become the preferred tool for illicit activities. Scammers use it to run Ponzi schemes, demand ransomware payments, and launder illicit funds. Some even launch investment scams that offer significant returns through fraudulent exchanges or non-existent coins. To further mask their activities, criminals frequently utilize additional technology or other laundering methods to obscure the trails of the funds, making it impossible to follow what would otherwise be a paper trail. While there are definite benefits in moving cryptocurrency through decentralized networks, those same benefits contributed to a significant increase in cryptocurrency-related scams, with industry analysts estimating the surge to be roughly $9.3 billion in 2024.
Legal and regulatory frameworks have historically lagged behind the pace of technological advancements. In the case of crypto crimes, prosecutors must rely on existing prosecutorial tools, such as wire fraud, securities fraud, and money laundering laws, to bring cases against crypto-related scams.
The passage of the GENIUS Act on July 18, 2025, has offered some help to combat illegitimate activity. This legislation creates a regulatory structure for payment-based stablecoins, providing consumer protections and guarding against illicit activity. With additional bills addressing the creation and utilization of digital assets on the way, it’s evident that the government is working to adapt to advancements in technology.
As new schemes emerge, the primary challenge for legal professionals is to understand and adapt to the technologies, no matter how they are being used. For individuals, if approached with an unusual offer to invest, consulting with an attorney is always recommended. While the government works to address these issues through new laws and regulations, the legal community must continually educate itself regarding the shifting landscape of cryptocurrency, technology, and now artificial intelligence.
Regardless of whether lawmakers develop new regulations or continue with current fraud and money laundering legislation, one thing is clear: cryptocurrency has become another tool in a fraudster’s arsenal, and the legal system must keep pace.
Arthur L. Aidala, Esq is the managing partner of Aidala, Bertuna and Kamins. He is a former Kings County Assistant District Attorney and is the host of the “Arthur Aidala Power Hour” weekdays at 6pm on AM970 The Answer.
Michael Jaccarino is a partner at Aidala, Bertuna & Kamins. He is a proven trial lawyer and a defender of the accused.
