How Do Georgia Laws Impact the Defense in Embezzlement Cases Involving Cryptocurrency?

How Does Cryptocurrency Embezzlement Differ from Other Types of Theft?

Cryptocurrencies are virtual “tokens” or forms of money that can be used to pay debts and purchase items in the real world. Although his “new frontier” currency is similar to money, due to their lack of state and federal regulation, they attract the attention of computer-savvy thieves.

Bitcoin, probably still the most well-known cryptocurrency, is an “open-source, peer-to-peer payment system.” Cryptocurrency has ways to verify funds’ ownership, such as the Bitcoin blockchain. Still, unlike most other banking transactions, it lacks substantial state and federal regulations protecting its use.

Therefore, over the last decade, the rise of cryptocurrency has also brought with it the rise of cryptocurrency crimes. Computer hackers and thieves steal billions of dollars worth of Bitcoins and other virtual currencies yearly. This is usually done using hacks, scams, fraudulent “initial coin offerings,” and pump-and-dump schemes.

For example, thieves stole over $400 million of cryptocurrency in just one crime.

This begs the question, if state and federal laws and regulations are not up to the tech inherent in these cryptocurrency crimes, how are they prosecuted and defended successfully?

In most cases, well-versed, knowledgeable, and thorough defense lawyers (and prosecutors) must rely on existing embezzlement, fraud, money laundering, etc., laws to prosecute and defend their clients.

Who Regulates Cryptocurrency Under Current State and Federal Laws?

So, how is cryptocurrency regulated in most states, and who creates these new laws and regulations?

To date, most Georgia state and local governments have been “hands-off” about diving into this new digital world and developing preventive regulations. However, there are state exceptions to this practice. For example, New York imposes a strict licensing requirement on cryptocurrency exchanges and other digital-coin-based businesses.

Additionally, at the federal government level, the Securities and Exchange Commission (SEC) has recently begun seriously regulating some aspects of this emerging financial area.

The government and its various agencies have begun to issue severe warnings about cryptocurrencies’ significant risks, particularly those who currently or plan to invest in these highly unregulated and high-risk investments.

That said, let’s say you’re accused of embezzlement in Georgia, and your case involves Bitcoin. Although the item you are accused of taking (Bitcoin, etc.) is a cryptocurrency, the current laws of embezzlement still apply; therefore, your defense will also be aimed at proving you innocent by using this highly precedented legislation

How Is Embezzlement Handled Under Georgia Law, and How Does It Apply To a Cryptocurrency Crime?

Most of Georgia’s financial laws are very specific about the type of theft or violation they address. Embezzlement refers to the theft of money or property by a person in a position of trust and responsible for the assets in question.

It includes people who hold a fiduciary relationship with their clients, such as bankers, accountants, guardians, employees, etc., who have a position that could allow them to steal the assets they are charged with protecting.

However, Georgia’s laws do not use the term “embezzlement.” Instead, they refer to this crime as “conversion.” Conversion is much more general and, under common law, refers to the unauthorized use or control of another’s property, which ostensibly could be a cryptocurrency.

On the other hand, embezzlement refers to property that a person had lawful possession of but then took for their own use.

So, if a cryptocurrency is unlawfully taken, one element of the crime is that the person initially had lawful possession of this new currency. This could be extremely difficult to prove in cases involving cryptocurrency. Therefore, depending on your embezzlement case, mounting a strategic and rational defense based on Georgia’s current financial laws might be easier or more challenging.

Also, under current Georgia legislation, money transmission is defined as “engaging in the business of receiving money or monetary value for transmission.” However, virtual currency as “a digital representation of monetary value” does not currently have legal tender status.” Based on the previous definitions, cryptocurrency transactions fall under this licensing requirement.

Current Georgia legal code defines a digital asset under the Revised Uniform Fiduciary Access to Digital Assets Act as “an electronic record in which an individual has a right or interest.”

This term shall not include an underlying asset or liability unless it is an electronic record.” The Act attempts to lay out rules for people who can access a person’s digital assets.

However, it is vague at best and may make it more difficult to prosecute (depending on the specifics of your case).

That said, if you are charged with any cryptocurrency crime, you must have a criminal defense law team that is well-versed and up-to-date on all of Georgia’s financial laws, especially the few that specifically address cryptocurrency crimes and their current economic status.

How can I defend myself against a cryptocurrency crime in Georgia?

Again, financial crimes in Georgia are well documented in current legislation, but the new frontier of cryptocurrency crime and its legislation is still in its infancy.

So, for example, if you are accused of cryptocurrency embezzlement, your skilled and experienced criminal defense lawyer will most likely use the current laws to strategize a winning defense.

Let’s say you’re charged with embezzlement; there are four elements that the prosecution must address, these are:

• These assets did not belong to you, and ownership must be established.
• In whatever manner, you had legal possession of these assets.
• You held a duty and trust over these assets.
• You intended to steal or otherwise use these assets on your behalf.

Several of the above factors can be very difficult to prove when dealing with a virtual asset because sufficient regulations and laws specifically address cryptocurrency. Therefore, this is a compelling defense if your experienced, aggressive, and diligent criminal defense lawyer can prove that the alleged misappropriation was unintentional or lacked malicious intent.

In any cryptocurrency crime, it’s mandatory that you have a criminal defense attorney who fully understands how current Georgia law impacts this new and usually complicated form of currency. This makes it compulsory to have the right criminal defense law team on your side.

I Have Been Charged with Embezzlement Involving Cryptocurrency; How Should I Proceed?

The emerging legal concept and use of cryptocurrencies are a new financial and legal frontier that many economic experts and lawyers are only beginning to understand and address fully. However, whatever the circumstances, embezzlement, and other financial crimes, if convicted, can have a dire impact on the rest of your life.

Therefore, if you are involved in the cryptocurrency market and accused of a crime, it’s mandatory that you obtain an aggressive, highly experienced, knowledgeable criminal defense law team that fully comprehends the legalities of virtual currency.

The aggressive and highly experienced criminal defense lawyers at Mones Law, P.C. are a strong and aggressive ally that will fight tirelessly to provide you with the best defense possible.

Call them today at 678-616-2647 for a free one-hour consultation on your case, and know that your future is in the best legal hands possible.