Cryptocurrency Expert Witness in Litigation
Provided by HG.org
Digital and online forms of money handled through transactions constitute cryptocurrency, and these networked interactions lead to possible legal complications based on real world issues with the technical and financial realms. To understand these matters better, a courtroom may need the help of an expert witness to detail what cryptocurrency is and how it affects the plaintiff.
In the digital world, computers and networking are becoming more important in the business and financial aspects of the globe, cryptocurrency has a purpose. The implications of online currency and payment for like services is not uncommon. However, by shifting income to strictly online aspects of money, it is possible for services and networked products to come to the forefront without real money interfering. Some may transfer cash into online gaming and other electronic pursuits, but cryptocurrency may remain digital payment for services and work without ever crossing the barriers of computer and real world.
When someone performs services for a company or person, he or she is often given payment of some sort. Usually, this occurs through income that transfers to a bank. However, some individuals and businesses are using another form of currency that only applies to the online world. Along with the myriad benefits of using these coins or other currency online, the person may also purchase products that keep his or her credit card or bank account details safe from those seeking to steal or copy the information. Unfortunately, as cryptocurrency is still relatively new for the legal system, there are numerous lawsuits that could occur and some that have started based on certain situations.
Tokens used as cryptocurrency provide the current and past owners the ability to track where they have been since the original creation of the token. Any discrepancy incurred may face settlement through a majority vote of those in ownership of such tokens and the rights behind them. The original idea behind these types of online payment was to bypass and prevent possible human tampering. The cryptocurrency should possess a better and more secure manner of business transactions than any usual currency in the world. This was the idea, and the digital software creating and managing the tokens provides more security than even a credit card may possess.
Issues that Lead to Lawsuits
When a person has cryptocurrency, he or she may incur a violation online or engage in behavior that leads to litigation. This occurs through initial coin offerings or ICOs, trading sites with this type of currency and by smart contracts. For outdated modes of cryptocurrency, investors are able to trade in previous versions for the newest. This would lead to Bitcoin and other tokens exchanged for the newest version when the project for the currency launches. However, sometimes the currency does not transfer or the company fails. The investment is then lost, and a lawsuit arises.
The Expert in Cryptocurrency
When the expert becomes part of an investigation into cryptocurrency matters, it is often due to a lawsuit based on economic injury. The individual that invested in a company does not receive his or her return or the initial investment back when the company folds. If there are any remaining assets, it is important that the investor receives his or her money for what was part of the startup for the business. Even if the online tokens no longer exist, the individual needs compensation for his or her actions. Others may face needing to litigate based on false claims with these online companies. Some entities are unable to launch the tokens and online transactions until months or years later.
Some investors are unaware that their invested funds are actually nonrefundable donations to the company facilitating the tokens for cryptocurrency entities. There are other instances where the business faced attacks to websites that caused a crash of the networked computers. This may lead to a loss of investment and economic damages to the investors. When the company does not stop the actions that occur or is unable to close down certain activity, the individuals involved in investing large sums sustain harm in the process.
Expert Testimony in Cryptocurrency Matters
Experts are often essential to the cryptocurrency concerns. The details of what these transactions and tokens are could confuse a standard judge or jury. Before the issues needs explaining, the case may need extensive testimony about what it is and how it works online. Any affected investors may need to file together through a class action lawsuit or litigate separately.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.