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Blockchain Resources

Blog Post

How Lessons Learned from Digital Assets Investigations Can Inform and Improve Fraud Prevention Strategies

Tens of billions of dollars in digital assets have been subjected to theft, fraud and other misappropriation over the last several years. Such incidents often trigger lengthy disputes, litigation, regulatory inquiry and/or asset recovery efforts, all of which require complex digital forensics investigations to uncover facts and evidence.

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What 2024 Holds for Blockchain and Digital Assets

Since the dawn of blockchain, each year has brought a flurry of excitement, unfulfilled hype, disruption, setback and innovation. The coming year will be no exception. Organizations have an opportunity to engage in emerging opportunities by watching developments closely and implementing risk-conscious strategies for pilot projects and investments in blockchain and digital assets.

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Bitcoin ETF Approval Stokes Reinvigorated Institutional Excitement for Cryptocurrency

Today, in a landmark moment for the digital assets ecosystem, the Securities and Exchange Commission approved the first ever Bitcoin ETF (exchange-traded fund). This highly anticipated decision opens a door for traditional finance (TradFi) institutions to pursue additional revenue streams by offering SEC-approved crypto investments to clients. Many industry watchers and financial analysts expected the approval to come through, in part due to the potential for it to drive billions of dollars into the market.

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Global Regulatory Trends in Crypto

FTI Consulting together with The Block and top crypto attorneys have developed a report examining the worldwide regulatory frameworks governing digital assets and cryptocurrencies.

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Digital Asset Investigations

Our team of blockchain forensics and cryptocurrency experts deliver services specifically for counsel looking to provide their clients with industry expertise. Our testifying experts and dedicated team of blockchain and digital assets investigators are battle-proven and have worked on some of the most prominent cases in the industry.

White Paper

How Cryptocurrency Intersects with Fraud Investigations

The rise of cryptocurrencies has brought about a new dimension of fraud and illicit activities, requiring legal teams to be prepared and equipped to conduct investigations and partner with trusted cryptocurrency experts. This comprehensive resource explores the intricate relationship between cryptocurrencies and fraudulent activities, providing valuable insights into the world of a cryptocurrency investigations expert.

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Q&A: FTI Technology’s Blockchain and Digital Assets Team Expands in the Middle East

Jorge Carrasco, a blockchain and digital assets expert with hands-on experience in emerging technologies, Web3 and advanced technical deployments, recently joined FTI Technology’s growing Blockchain and Digital Assets practice, as a Managing Director in Dubai. In this Q&A, Jorge discusses the opportunities and risks organisations in the Middle East should be thinking about as they explore metaverse, Web3 and other blockchain-based applications.

Case Study

Distressed Cryptocurrency Exchange Selects FTI Consulting for Bankruptcy and Restructuring Services

When the cryptocurrency markets declined suddenly, a cryptocurrency platform providing mobile app-based brokerage, custody and lending services faced serious hardship. The company engaged FTI Consulting’s experts in corporate restructuring and cryptocurrency and digital assets to provide in-depth technical due diligence and strategic recovery advice.

Case Study

In Pre-Class Action Investigation Involving a Decentralized Finance Exchange, FTI Technology Provides Detailed Findings Relating to Alleged Conspiracy to Defraud

A decentralized finance exchange was hacked and facing class action litigation relating to fraud allegations. FTI Technology’s Blockchain & Digital Assets practice was selected by the organization’s law firm to conduct an investigation and uncover key facts.

Case Study

FTI Technology Provides Investigations Expertise and Testimony in Digital Assets Dispute

A leading cryptocurrency exchange was defending a dispute, which involved customer claims regarding unsupported tokens mistakenly loaded to the exchange’s platform. FTI Technology’s Blockchain & Digital Assets team was engaged to provide digital forensics expertise, investigatory support and digital assets advising.

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FTI Technology Leads Cryptocurrency Loss of Funds Dispute

A leading cryptocurrency exchange was facing a lawsuit filed by a customer who sought damages for funds lost on the exchange. FTI Technology’s Blockchain & Digital Assets practice was selected to conduct an investigation into the matter and provide expert testimony to the court.

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Enterprise Blockchain and the Future of Energy: Q&A with Mark Cole, USD Group

Steve McNew, Senior Managing Director and Global Leader for FTI Technology’s Blockchain & Digital Assets practice, is one of the industry’s foremost experts in enterprise blockchain, cryptocurrency and the future of the digital assets space. He recently spoke with Mark Cole, Co-General Counsel and Secretary at USD Group LLC, an energy infrastructure solutions provider, about a range of topics, including blockchain opportunities in the energy industry, the importance of innovation during disruptive periods and ESG considerations.

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How Cryptocurrency Intersects with Fraud Investigations

The post-pandemic workplace has dramatically changed both information governance and the employee/employer relationship. With new remote models and changing philosophies towards work, organizational data is more vulnerable than ever before. Control, understanding and action are the keys to managing data, whether that includes PII or trade secrets. and a combination of technology and policy tools are required to ensure the organization is prepared and protected, and that data can be recovered and secured.

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MiCAR: An Overview of Everything Important About the Crypto Regulatory Framework

Agreed upon text for MiCAR, Markets in Crypto-Assets Regulation, was published by the European Council in October 2022, with expectations that the regulation will be ratified in early 2023. Once approved, the law will come into force within 20 days and regulatated entities will have between 12-18 months to establish compliance. This raises significant questions for how organisations can deal with cryptocurrencies, how NFTs will be regulated and when the new regulatory framework will apply. This article discusses the key points.

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Is Blockchain Technology the Answer to the Supply Chain Act?

The past decade has seen an increase, globally, in the scrutinization of corporate supply chains, specifically those involving material sourcing and labour practices. The passing of the German Supply Chain Act in June 2021 is one milestone step in response to public outcry for companies to better monitor and remediate human rights and environmental risks in their supply chains. At a practical level, however, providing such transparency, maintaining efficiency and operationalising new regulatory requirements will be challenging for many organisations. As new supply chain reporting practices and obligations scale up, blockchain technology offers a promising solution to facilitate and automate transparency, security and enhanced communication with regulatory bodies and partners.

Case Study

FTI Technology’s Blockchain and Digital Assets Practice Provides Technical and Operational Due Diligence for Pre-IPO Cryptocurrency Exchange

An emerging cryptocurrency and digital assets technology company was preparing for a possible IPO and evaluating strategies for rapid and sustained growth. The organization engaged FTI Technology’s Blockchain & Digital Assets Practice to provide advisory services, due diligence and guidance to establish and support growth plans.

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Myth Busting: 5 Common Misconceptions in Blockchain and Digital Assets

In a recent survey of decision makers at fintechs and financial services organizations, 95% said blockchain and/or cryptocurrencies will be a high or significant priority for their business in the coming year. This finding is just one of many signals that indicate massive and ongoing growth in adoption and investment among blockchain, cryptocurrencies and other digital assets. As interest in the space continues to expand from early adopters to the mainstream, there will be an increased need for education across these markets. For organizations to make strategic decisions about how their business will invest in or engage with blockchain and digital assets, they’ll need to clarify common misconceptions.

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Understanding the Functionality and Benefits of Smart Contracts for Corporations

Until recently, the term “smart contracts” was little more than a buzzword. As part of the rising hype within the blockchain and digital assets arena, smart contracts have been of interest to many but understood by few. That’s beginning to change as a wide range of real-world, practical smart contracts use cases are gaining momentum and proving results for business operations within a growing number of enterprises. Many organizations have started to digitally map workflows, improve processes and achieve faster, more transparent and reliable transactions with the help of smart contracts. This article discusses the key features of smart contracts, leading use cases, functionality and benefits.

Case Study

FTI Technology Serves as Third-Party Expert and Witness in Complicated Cryptocurrency Fraud and Racketeering Lawsuit

When a technology company sought to validate its suspicions that a business partner was engaging in fraud and racketeering against the company, its legal counsel retained FTI’s Blockchain Advisory and Cryptocurrency Disputes, Investigations and Litigation (CDI&L) practice to investigate.

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Transportation and Product Tracking – Implementation and Development of Transformative Blockchain System

Blockchain solution saves energy company an estimated $3m annually.

Case Study

Assess & Advise: Pre-Acquisition Cryptocurrency Assessment

FTI Technology’s cryptocurrency experts provide in-depth audit of digital assets, business model and infrastructure in support of due diligence activities.

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Survey Finds Blockchain and Cryptocurrency Spending is on the Rise in Financial Sector

In the financial services sector, organizations are now spending an average of $176.4 million per year on their blockchain and cryptocurrency projects. According to a recent survey of industry decision makers that our team commissioned, investments are largely fueled by an overwhelming confidence in the success of blockchain and cryptocurrency projects and belief in the positive benefits they will bring to businesses, governments and consumers.

White Paper

The State of Blockchain Technology and Digital Assets in Financial Services: An Escalating Industry Disruption

Blockchain technology and the digital asset class, including cryptocurrencies, have experienced a rapid and accelerating evolution. Overall, the number of companies bringing services to market to support real-world blockchain and cryptocurrency applications through payments, loans, custody, investment and clearance and settlement is on a steady uptick, illustrating the technology’s momentum among financial institutions looking to establish an early position in the industry while awaiting regulatory clarity.

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The State of Crypto M&A

The Block's Director of News Frank Chaparro and FTI Technology's Senior Managing Director, Head of the Blockchain and Cryptocurrency Practice, Steve McNew, take a look at the latest updates across M&A within the crypto space.

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Cryptocurrency and the Rise of SPACs: A Match Made in Investor Heaven?

Investors are continuing to watch two of the market’s hottest trends today: special purpose acquisition companies (SPACs) and cryptocurrency. On the heels of Coinbase’s IPO in April, financial analysts have suggested a potential “watershed” for the crypto industry. At the same time, there have been more than 300 SPAC IPOs so far in 2021, far surpassing the 2020 record number of 248 for the entire year. Linking these two trends together makes for an interesting opportunity for investors to quickly buy into a hot, emerging market.

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Technical Considerations Amid the Explosion of Crypto Acquisitions and Public Listings

In addition to IPO and M&A moves, digital asset research firm The Block reported that 2021 will see the most private funding in cryptocurrency to date.

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Demystifying Blockchain – A conversation with FTI’s Blockchain Leader Steve McNew

Achieving transparency in today’s B2B operational environment requires a new set of rules. From tighter budgets and timelines to the need for near real-time visibility into the supply chain all while meeting regulatory and compliance requirements - today’s technology and operations leaders are being asked to do more with less. To rise to the challenge, they need to be provided with the necessary tools and processes to mitigate risks, protect profitability, streamline processes and to work more effectively.

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News Roundup: Blockchain and Cryptocurrency Activity and COVID-19 Pandemic

We are living in unprecedented times. Every industry, every profession, every nation has now felt the impacts of the global COVID-19 pandemic. Even though many of us have more time on our hands due to mandated or self-imposed isolation, there still aren’t enough hours in the day to keep up on all of the news. Our Blockchain Advisory and Cryptocurrency Disputes, Investigations and Litigation (CDI&L) team has been watching the news closely as it relates to cryptocurrency and blockchain opportunities and deployments. While not all encompassing, the round-up below highlights some of the most interesting industry news we’re seeing to date.

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FTI Talks Cryptocurrency Policy, Opportunity and Forecast at Global Blockchain Association Future of Money Conference

Like with all other disruptive technologies, in blockchain and cryptocurrency, the leapfrog game of new challenges, new advancements and new laws, will continue as the space matures.

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The Most Interesting Cryptocurrency Stories to Close out 2019

Cryptocurrency news heated up at the end of 2019. The second half of the year also brought a wave of new litigations around cryptocurrency misuse, fraud and theft. I expect we’ll see even more of this in 2020, along with a surge of interesting news. Industry watchers can expect a range of cases, from the state level, all the way up to far-reaching cross-border matters, as criminals find new ways to leverage crypto markets to further their malicious interests.

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Federal Cryptocurrency Regulation Introduced for 2020

As 2019 came to a close, and pundits looked back on the tumult of regulatory changes that shaped the last decade, lawmakers slipped in a few final bills. One, introduced in late December by U.S. Congressman Paul Gosar from Arizona, has the potential to make waves in the financial world. The Crypto-Currency Act of 2020 was drafted to add clarity to the cryptocurrency industry and provide a clear framework for crypto regulations in the U.S.

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2020 Forecast: Expect Landmark Changes in E-Discovery, Data Privacy and Investigations

Across our practice areas, we asked our experts to share their predictions for what will shape legal, compliance and information governance in the coming year. Below is a roundup—across new laws, emerging technology and key industries—of what they expect will make the biggest impact to businesses worldwide.

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Cryptocurrency Trends to Watch

Today, there are more than 2,200 types of cryptocurrency in the global markets. An estimated 34.6 million digital wallets are in use. Between new client matters and a gripping news cycle relating to cryptocurrency regulations, scams and investigations, our team has identified several key trends impacting the industry.

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Hacking, Extortion and Stolen Coins: Unraveling a Major Cryptocurrency Breach

When one of the world’s largest cryptocurrency exchanges was breached in May of this year, few in the industry were surprised. Cryptocurrency exchanges have long been appealing targets of malicious actors looking to steal currency and personal information. But this recent breach, which will potentially impact tens of thousands of cryptocurrency investors around the world, is particularly unique. The series of events that has unfolded in its aftermath serves as a stark reminder that the criminals looking to profit from this industry are both sophisticated and highly motivated.

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Questions Arise Amid IRS Crackdown on Cryptocurrency Investors

In July, more than 10,000 cryptocurrency investors received warning from the IRS that they may owe taxes on improperly reported income. Weeks later, another round of letters were sent to some, outlining the amount of taxes owed for cryptocurrency gains and demands for payment. These letters are likely the tip of the iceberg in a long-anticipated IRS crackdown on crypto income—the latest in a series of government activity in this arena.

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Cryptocurrency Regulation Round Up

The regulation of digital currency markets in the U.S. and abroad remains foggy. Today, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have been vague regarding how tokens and crypto-based assets map to traditional securities. Clear guidance has not emerged. However, even in the absence of guidance, regulators are bringing forth enforcement actions against companies believed to have engaged in improper cryptocurrency operations.

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SEC Weighs in on Crypto Project, Offers Limited Guidance

In early April, the Securities and Exchange Commission issued its first "no-action" letter regarding business use of blockchain-based digital assets. The letter was in response to a proposal from an air charter provider looking to launch a blockchain-based token platform to facilitate sales for air charter services. While the SEC’s response does offer some guidance, it outlines very restrictive conditions for the proposed program and is not particularly actionable for the broader business community.

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Cryptocurrency Pyramid Scheme Investigations Continue Worldwide

In March, news broke of fraud and money laundering charges brought against the leaders of the global, multi-billion-dollar OneCoin cryptocurrency pyramid scheme. The story has continued to develop in months since, with arrests made and new information revealed about the extent of the damages that have followed in its wake.

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Cryptocurrency Market Activity Signals Trends to Watch

On April 2, Bitcoin mysteriously spiked to $5,000, reaching nearly five-month highs in just a 60-minute period. Some experts think this jump may be the beginning of a renewed surge in cryptocurrency value.

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Digital Asset Protection Gains Momentum: Considerations for Insurers

Insurance claims involving cryptocurrencies are on the rise. Today, the industry is not fully prepared for how to deal with them. These claims seem like familiar claims on the surface, but have incredible uniqueness due to the involvement of cryptocurrencies.