The Law Offices of Andrew Dressel LLC was one of the first law firms in the country to successfully represent crypto and blockchain clients in litigation. Our experience in this area has made the firm founder Andrew Dressel the go-to attorney for many cryptocurrency businesses and investors in New Jersey and beyond.
We represent 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.
What is Cryptocurrency?
Cryptocurrency is a digital asset that can be used as a medium of exchange or store of value, much like physical money is used in the real world. Crypto assets—like Bitcoin (BTC), Ethereum (ETH), and Tether (USDT)—are stored in secure digital wallets. And crypto transactions are recorded on a decentralized network of virtual ledgers called the blockchain. This technology makes it nearly impossible to counterfeit, double-spend, or steal.
What is Cryptocurrency Litigation?
Although cryptocurrency is often designed to be self-regulatory, and it lives on the blockchain where “code is law,” disagreements over its creation, ownership, and use must sometimes be resolved through the legal system.
When a cryptocurrency dispute arises, the The Law Offices of Andrew Dressel LLC team always tries to find a solution at the negotiating table, or through an out-of-court dispute resolution process like mediation or arbitration. These options are more efficient than litigation and keep the parties’ business out of the public eye. But sometimes litigation is unavoidable.
A judge or jury will ultimately decide who is in the right in these cases, so it is our responsibility to persuade the court that a resolution favoring our client is the right outcome. To do this, we gather evidence, identify witnesses or key individuals that should be deposed, draft legal documents to file with the court, and appear in court to advocate for our clients as the case progresses.
We always keep a line of communication open with the other side because they often realize negotiating a settlement would serve them better than going to trial.
Types of Cryptocurrency Litigation
The legal issues facing cryptocurrency companies are as varied as the companies themselves, but many of them involve:
- Disagreements between founders, partners, or shareholders;
- Disgruntled investors;
- Business mergers, acquisitions, or deals that didn’t work out as planned;
- Breach of contract;
- Claims of unfair competition;
- Employment and labor law;
- Consumer law and fraud; or
- Disputes over intellectual property.
Most of these lawsuits involve two or three parties, but some concern a whole class of aggrieved plaintiffs. When many parties claim to have suffered similar harm, the case may be filed as a class action.
Types of Cryptocurrency Litigation
The legal issues facing cryptocurrency companies are as varied as the companies themselves, but many of them involve:
- Disagreements between founders, partners, or shareholders;
- Disgruntled investors;
- Business mergers, acquisitions, or deals that didn’t work out as planned;
- Breach of contract;
- Claims of unfair competition;
- Employment and labor law;
- Consumer law and fraud; or
- Disputes over intellectual property.
Most of these lawsuits involve two or three parties, but some concern a whole class of aggrieved plaintiffs. When many parties claim to have suffered similar harm, the case may be filed as a class action.
Challenges with Cryptocurrency Litigation
All litigation is challenging. If it were not, the case would have settled long ago. But cryptocurrency litigation is uniquely difficult.
First, cryptocurrency is typically designed to be self-regulating. And smart contracts involving it are often written to be self-executing. Persuading the parties involved in a dispute governed by state or federal law is often an uphill battle.
As is identifying all the parties involved, and properly notifying them of pending legal actions. This is particularly challenging when coins can be held anonymously or when an entity is set up as a decentralized autonomous organization (DAO). Decentralization also makes determining the proper jurisdiction to file a case more difficult.
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.
Finally, cryptocurrency and the blockchain are relatively new concepts. In many cases it is necessary to educate the judge and jury about cutting-edge technology or concepts in addition to persuading them the law is on our client’s side.
Despite these and other difficulties, The Law Offices of Andrew Dressel LLC has successfully litigated a number of cryptocurrency disputes.
Contact a Cryptocurrency Litigation Attorney
Andrew Dressel is an experienced litigator who understands the potential and perils of digital currencies and the blockchain. If you are involved in a dispute over cryptocurrency, the The Law Offices of Andrew Dressel LLC team is ready to go to court to protect your interests.
However, we never let your eagerness to be in the courtroom conflict with the needs of our clients. We never forget that litigation is a means to an end, not the end goal. Focusing on the long-term and figuring out what needs to happen in order for you to move forward always informs our litigation strategy.
Whether you are the owner of a company such as a mining or trading operation, or simply an investor with significant blockchain assets, The Law Offices of Andrew Dressel LLC is ready to hear more about your case. Contact us today to set up a meeting with our team.
Cryptocurrency Litigation FAQs
Filing a lawsuit is not difficult. Anyone can file a lawsuit over virtually anything. What is difficult is filing a lawsuit that will get you the outcome you desire and determining the proper court for your potential suit. The Law Offices of Andrew Dressel LLC can help you evaluate the situation you are in and advise you if litigation is appropriate.
Litigation is not a quick and easy way to solve a dispute. It is a lengthy, drawn-out process that can take months or even years. In New Jersey, many civil lawsuits are settled because the parties grow tired of waiting for their day in court. Cases that do go to trial, and are then appealed by the losing party, take even longer to resolve.
In New Jersey, most civil litigation follows a similar path. First, a complaint is filed with the court. The complaint outlines the dispute between the two parties and tells the court what the plaintiff would like the defendant to do to make things right.
The defendant then files a response briefly telling their side of the story and making any counterclaims. The court will look at these documents and decide if there is an actual dispute it can resolve.
Some cases do not make it past this step. Those that do, move on to the discovery phase, where both sides look for evidence that supports their claims. If the case does not settle, it then goes to trial. The judge will reach a verdict, which may be appealed if either party is dissatisfied.
At The Law Offices of Andrew Dressel LLC, we will guide you through every step of the litigation process—from pretrial negotiations and discovery, to closing statements. At each stage of the case, we will advise you of your options and counsel you on what steps we think would best achieve your long-term goals.
To prepare yourself for civil litigation, it’s important to speak with an experienced attorney like those at The Law Offices of Andrew Dressel LLC. No two cases are alike, so you need the personalized advice a lawyer can offer you. Beyond that, gather and save documents and other information that helps you remember and tell your side of the story. These things can help an attorney assess your case and may be important evidence at trial.