The Law Offices of Andrew Dressel LLC’s team of experienced attorneys helps cryptocurrency users, investors, and innovators protect themselves from legal liability by drafting and reviewing the contracts that link the blockchain with the real world. We pride ourselves on our ability to craft agreements that minimize legal risk while clearing the way for growth and innovation.
When disputes arise, however, we move quickly to resolve them. Whether inside the courtroom or at the negotiating table, we find a solution that allows the parties involved to move forward.
Types of Cryptocurrency Contracts
Cryptocurrency users, investors, and business owners deal with two different types of contracts—traditional agreements and so-called “smart contracts.”
Traditional Contracts
The Law Offices of Andrew Dressel LLC negotiates, drafts, and evaluates traditional contracts on behalf of our crypto clients. At their core, these agreements create an obligation to perform (or not perform) a specific duty. That may sound simple, but most of the contracts our clients execute are anything but.
One of the defining features of cryptocurrency is that it is not issued by a central government or central bank. In theory, this makes each currency self-regulating, but to say that “code is law” is hyperbole. When complex terms must be negotiated, or disputes arise, most crypto users want to be able to rely on the legal system as a backstop. Crafting contracts that allow crypto companies to innovate and push the envelope while remaining tethered to the legal system is challenging, but it is something The Law Offices of Andrew Dressel LLC does well.
Crypto companies must also must also be prepared to execute the contracts needed to partner with investors, hire employees, sell or license a product or service, and otherwise get and keep things up and running. Business-minded attorney like Andrew Dressel helps crypto companies ensure they have these necessary documents in place.
Traditional Contracts
The Law Offices of Andrew Dressel LLC negotiates, drafts, and evaluates traditional contracts on behalf of our crypto clients. At their core, these agreements create an obligation to perform (or not perform) a specific duty. That may sound simple, but most of the contracts our clients execute are anything but.
One of the defining features of cryptocurrency is that it is not issued by a central government or central bank. In theory, this makes each currency self-regulating, but to say that “code is law” is hyperbole. When complex terms must be negotiated, or disputes arise, most crypto users want to be able to rely on the legal system as a backstop. Crafting contracts that allow crypto companies to innovate and push the envelope while remaining tethered to the legal system is challenging, but it is something The Law Offices of Andrew Dressel LLC does well.
Crypto companies must also must also be prepared to execute the contracts needed to partner with investors, hire employees, sell or license a product or service, and otherwise get and keep things up and running. Business-minded attorney like Andrew Dressel helps crypto companies ensure they have these necessary documents in place.
Smart Contracts
A growing number of crypto and traditional businesses are using smart contracts to streamline their transactions. These contracts, which live on the blockchain are coded such that certain actions are automatically taken when agreed-upon conditions are met. The automated terms of these contracts must be carefully drafted to ensure they accurately reflect the desires of the parties, which takes legal and technical know-how.
Types of Cryptocurrency Disputes
The most important part of many contracts are the sections detailing what happens if a disagreement arises. This is true even in the crypto world where the use of distributed ledgers clearly shows what actions have been taken by the parties.
The Law Offices of Andrew Dressel LLC makes sure the cryptocurrency contracts we draft and review for our clients adequately protect them if common disputes arise:
- What happens if one party thinks the other has not performed their contractual obligations?
- When fraud or some other sort of malfeasance is alleged, what remedies are available?
- How should disagreements between business partners be resolved?
- What if the parties want to sever their relationship and move in a different direction?
- How will things shake out if the other party insists there is no contract?
- What happens when disagreements arise that are NOT addressed by the contract?
The Law Offices of Andrew Dressel LLC makes sure the cryptocurrency contracts we draft and review for our clients adequately protect them if common disputes arise:
- What happens if one party thinks the other has not performed their contractual obligations?
- When fraud or some other sort of malfeasance is alleged, what remedies are available?
- How should disagreements between business partners be resolved?
- What if the parties want to sever their relationship and move in a different direction?
- How will things shake out if the other party insists there is no contract?
- What happens when disagreements arise that are NOT addressed by the contract?
The answer to these questions is different in every case, but many of the obstacles we encounter as we work toward a solution are similar.
- Identifying the parties involved and properly notifying them of pending legal actions can be challenging. This is especially true when coins can be held anonymously or when an entity is set up as a decentralized autonomous organization (DAO).
- Parties who are adamant that cryptocurrency is self-governing and not subject to any external regulation often do not believe that any state and federal laws apply to them.
- Decentralization makes determining the proper jurisdiction to file a case more difficult since the blockchain has no physical location and users can access it from anywhere.
- Unfortunately, hacking, theft, allegations of fraud and other suggestions of malfeasance are common. There are many unsavory actors ready to take advantage of people and businesses eager to adopt crypto/blockchain technology without doing proper due diligence.
- All these barriers to litigation take time to overcome, and that presents yet another challenge. Once a breach or injury occurs, plaintiffs have a limited window of opportunity to file a lawsuit. If it takes too long to determine who to sue and where, it may be too late to seek justice.
Despite these and other difficulties, The Law Offices of Andrew Dressel LLC has successfully resolved a number of cryptocurrency disputes.
How Can an Attorney Help Me With Cryptocurrency Disputes and Contracts?
Being a cryptocurrency innovator or an early adopter means being comfortable with taking risks. You have to accept the fact that your plans may not work as intended and your investments might not pay off.
Legal risks, on the other hand, can be mitigated or minimized by consulting with legal counsel that understands the potential and perils of digital currencies and the blockchain. Managing legal risk frees up resources and allows you to focus on other issues that need attention.
When a dispute arises, you need experienced attorneys who can advocate for your best interests around the negotiating table and in the courtroom. Working with a team that understands the tech and respects your business decisions while being able to persuade the relevant decision-makers that the law is on your side is important.
Speak With a Cryptocurrency Dispute and Contracts Attorney
The Law Offices of Andrew Dressel LLC partner Andrew Dressel has become the go-to advisor for many cryptocurrency business owners, investors, and users in New Jersey and beyond.
We help clients who are creating, building, and investing in the next big thing secure their legal rights and protect them from legal liability by drafting and reviewing innovative contracts and other legal documents. When disputes arise, we aggressively defend our clients’ interests around the negotiating table, and in the courtroom. We were one of the first law firms in the country to successfully represent crypto and blockchain clients in litigation, and all of our clients benefit from that experience.
Whether you want to head off a dispute by ensuring the agreements you execute are sound, or find yourself in the middle of a legal battle, The Law Offices of Andrew Dressel LLC is here for you. Please contact us today to schedule a meeting.
Cryptocurrency Disputes and Contracts FAQs
Smart contracts are legal agreements that are a mixture of contract and code. When certain conditions are met, pre-agreed-upon actions occur automatically. For example, you could draft a smart contract that automatically reorders stock when inventory gets low. Or releases the latest passcode to building amenities once a renter’s monthly payment clears. Some smart contracts live on the blockchain and all the actions of the parties involved are recorded in a distributed ledger accessible to all.
Determining what court has jurisdiction over a dispute involving cryptocurrency can be challenging because the blockchain has no physical address and all of the participants are located in different places. Oftentimes the user agreement or contract governing the relationship between the parties involved in a dispute will include a choice of law provision indicating how and where disputes should be resolved.
The answer to this question is every lawyer’s favorite answer: it depends. We may be able to help if you are in a business or employment dispute and your cryptocurrency or interest in a crypto company is at stake. If you were hacked or targeted by a con artist, contacting the police is a better option.
The Law Offices of Andrew Dressel LLC represents crypto clients in a variety of business and commercial disputes. We handle everything from contract negotiation, review, and drafting, to complex litigation and regulatory actions for clients who are building businesses in mining or trading crypto, investing in crypto assets, or leveraging blockchain technologies to enhance their businesses. We handle cases being heard by regulatory bodies as well as complex business disputes—including breach of contract cases, employment disputes, and disagreements between partners and shareholders over business governance or goals.