Texas Attorneys for Cryptocurrency Protection, Fraud Claims

Protect Digital Assets, Defend Against Cryptocurrency Fraud Claims with Trusted Legal Counsel

When cryptocurrency disputes threaten your investments, you need an attorney who understands both the technology and the law. Since 2011, our law firm’s attorneys have been at the forefront of cryptocurrency legal matters, combining deep technical knowledge with strategic legal expertise to protect digital assets nationwide.

Whether you're facing fraud allegations, regulatory scrutiny, or seeking to recover stolen cryptocurrency, our specialized team provides the guidance and representation you need in this rapidly evolving landscape.

On This Page:

• Understanding Cryptocurrency
• Cases We Handle
• Why Hendershot Cowart P.C.?
• Cryptocurrency Fraud vs. Bad Investment
• Frequently Asked Questions

Schedule a confidential consultation. Call (713) 783-3110 today or contact us online. 

Understanding Cryptocurrency Legal Disputes

Cryptocurrency disputes present unique challenges that traditional legal approaches often fail to address. These cases exist at the intersection of cutting-edge technology, evolving regulations, and traditional legal principles.

The Trustless Nature of Blockchain

Blockchain technology creates what experts call a "trustless protocol" for transferring value. This trustless nature means transactions are:

• Irreversible once confirmed
• Not subject to chargebacks or traditional banking protections
• Secured through cryptographic principles rather than institutional oversight

When disputes arise in this environment, legal remedies must be carefully crafted to address the technical realities of cryptocurrency transactions.

Cryptocurrency Cases We Handle

Our practice focuses on several key areas where legal disputes frequently arise:

Cryptocurrency Fraud Defense

Being accused of cryptocurrency fraud can be devastating to your reputation and livelihood. We provide robust defense for clients facing allegations of:

• Market manipulation
• Pump-and-dump schemes
• Fraudulent ICOs or token sales
• Deceptive trading practices
• Operating unregistered securities exchanges
• Misappropriation of investor funds

Our approach combines aggressive advocacy with strategic legal positioning, often working with forensic blockchain analysts to establish factual timelines that counter prosecutorial narratives.

Cryptocurrency Regulatory Compliance and Defense

The regulatory landscape for cryptocurrency continues to evolve rapidly. We help clients navigate:

• Securities and Exchange Commission (SEC) investigations and enforcement actions
• Commodity Futures Trading Commission (CFTC) regulatory matters
• Financial Crimes Enforcement Network (FinCEN) compliance issues
• Compliance with Texas regulatory requirements, including the Texas Virtual Currency Act 
• Texas State Securities Board (TSSB) cease-and-desist actions

Recent shifts in enforcement priorities have created both opportunities and risks for cryptocurrency businesses. We help clients adapt to these changing dynamics while maintaining robust compliance frameworks.

Stolen Cryptocurrency Assets

When cryptocurrency is stolen through hacking, phishing, or other means, rapid response is essential. Our crypto fraud attorneys can take these steps to pursue suspected fraudsters and help recover your crypto assets or investment:

1. Immediate Investigation: We work with blockchain forensics experts to trace stolen assets across the blockchain.
2. Strategic Legal Action: We deploy emergency legal remedies including temporary restraining orders and preliminary injunctions targeting identified wallets and exchanges. 
3. Exchange Coordination: We engage directly with cryptocurrency exchanges to freeze suspicious accounts and prevent further movement of stolen assets.
4. Litigation: We can file a lawsuit against identifiable plaintiffs and, when appropriate, negligent third parties. Common legal claims include fraud, misrepresentation, and breach of contract.
5. Recovery: We can work with recovery experts to help you recover digital assets that might otherwise have been permanently lost.
6. Criminal Referrals: We can coordinate with law enforcement while maintaining control of the civil recovery process.

Why Choose Hendershot Cowart P.C.?

Cryptocurrency disputes require more than just legal knowledge – they demand a fundamental understanding of blockchain technology, cryptographic principles, and the decentralized systems that make cryptocurrency a revolutionary financial innovation. 

The founder of our cryptocurrency practice, Philip Racusin, has been immersed in the blockchain ecosystem since 2011. He and his team understand its technological foundations, evolving applications, and unique legal challenges.

This technical foundation allows us to:

• Identify vulnerabilities in cases that other attorneys might miss
• Communicate effectively with technical experts and witnesses
• Develop innovative legal strategies specific to blockchain-based disputes
• Translate complex technical concepts for judges and juries
• Stay ahead of regulatory developments in this rapidly changing field

We represent individuals and businesses throughout the United States from our Texas base, where we leverage the state's progressive approach to cryptocurrency regulation to benefit our clients nationwide.

Cryptocurrency Fraud vs. Bad Investment: Do You Have a Case?

It can be difficult sometimes to differentiate cryptocurrency fraud from a bad investment. 

When cryptocurrency investments vanish, you need answers fast. We can conduct a forensic review of the investment, collecting technical evidence of the suspected theft or transaction (such as tracking transactions on the blockchain) to help you determine whether fraud occurred or if losses were due to other factors like hacking, user error, or market volatility. We can then help you evaluate if you have a legal claim, and which party or parties may be culpable.

It's important to act quickly. If you suspect fraudulent activity related to a cryptocurrency investment or transaction, contact our law firm immediately to better preserve available evidence and the best chance to recover missing assets. 

Schedule your confidential consultation today by calling (713) 783-3110 or contacting us online 24/7.

Don't Face Cryptocurrency Legal Challenges Alone

The intersection of emerging technology and evolving regulations creates unique legal vulnerabilities for cryptocurrency businesses and investors. Our specialized practice provides the technical understanding and legal expertise necessary to navigate these complex waters successfully.

Whether you're facing accusations of wrongdoing, seeking to recover stolen assets, or navigating regulatory compliance, we offer the specialized representation you need.

Frequently Asked Legal Questions About Cryptocurrency 

What makes cryptocurrency legal issues different from traditional financial disputes?

Cryptocurrency disputes involve unique technical, legal, and regulatory considerations:

• Irreversibility: Unlike traditional financial transactions, cryptocurrency transactions cannot be reversed once confirmed on the blockchain.
• Technical complexity: Cases often hinge on understanding cryptographic principles, blockchain architecture, and digital security.
• Jurisdictional challenges: Decentralized networks operate globally, creating complex jurisdictional questions.
• Evolving regulations: The regulatory framework is still developing, creating new challenges and opportunities.
• Limited precedent: The body of case law specifically addressing cryptocurrency disputes remains limited.

These factors require attorneys with both technical understanding and specialized legal knowledge to effectively represent clients. For businesses, this means navigating complex compliance requirements while seizing new opportunities in digital assets. For investors, it demands heightened vigilance against sophisticated fraud schemes while understanding the limited recovery options when losses occur.

What happens if the fraudsters are located in another country?

We can file a lawsuit in U.S. courts and potentially obtain a judgment against them. This judgment can then be "domesticated" (legally recognized) in their home country through international legal agreements.

The effectiveness of cross-border enforcement depends on the fraudster's location:

• Countries with strong legal cooperation with the U.S. (like the UK, Canada, Australia, and many EU nations) offer better chances of recovery
• Countries with limited diplomatic relations or weak rule of law present greater challenges

Our firm has experience with international asset recovery and works with a network of global legal partners to trace and recover cryptocurrency across jurisdictions. While cross-border cases are more complex, successful recovery remains possible with prompt action and the right legal strategy.

What should I do immediately if I've been accused of cryptocurrency fraud?

If you've been accused of cryptocurrency fraud:

1. Do not discuss the matter with anyone other than your attorney
2. Preserve all records related to the cryptocurrency transactions in question
3. Secure your digital assets by moving them to cold storage if appropriate
4. Document your account access history if possible
5. Contact a specialized cryptocurrency attorney immediately

Early legal intervention often makes a critical difference in fraud defense cases, as it allows for preservation of evidence and development of a proactive strategy.

How does the Texas Virtual Currency Act affect my cryptocurrency business or investments?

The Texas Virtual Currency Act provides several important protections for cryptocurrency businesses and investors:

• It explicitly defines virtual currency as "a digital representation of value that is used as a medium of exchange, unit of account, or store of value"
• It incorporates cryptocurrency into Texas' existing commercial framework
• It provides cryptocurrency holders with explicit legal rights similar to those of bona fide purchasers of negotiable instruments
• It establishes clear rules for when a person has "control" of virtual currency

These provisions create greater legal certainty for cryptocurrency businesses operating in Texas and provide a stronger foundation for resolving disputes through Texas courts.

Which regulatory agencies have authority over cryptocurrency in the United States?

Multiple regulatory agencies claim jurisdiction over different aspects of cryptocurrency:

• Securities and Exchange Commission (SEC): Regulates cryptocurrencies that qualify as securities under the Howey test
• Commodity Futures Trading Commission (CFTC): Regulates cryptocurrencies as commodities and oversees derivatives markets
• Financial Crimes Enforcement Network (FinCEN): Enforces anti-money laundering regulations for cryptocurrency businesses
• Office of Foreign Assets Control (OFAC): Enforces sanctions compliance for cryptocurrency transactions
• Internal Revenue Service (IRS): Oversees taxation of cryptocurrency transactions
• State agencies: Various state agencies regulate aspects of cryptocurrency businesses, especially money transmission (including the exchange of stablecoins)

Navigating this complex regulatory landscape requires understanding which aspects of your cryptocurrency activities fall under each agency's jurisdiction.

Can you represent me if I'm not located in Texas?

Yes, we represent clients throughout the United States. 

What information should I prepare before our initial consultation?

To make our initial consultation most productive, please prepare:

1. Timeline of events: Chronological summary of relevant cryptocurrency transactions or incidents
2. Transaction details: Wallet addresses, transaction IDs, and amounts involved
3. Communications: Copies of relevant emails, messages, or support tickets
4. Account information: Details of exchanges or services involved
5. Documentation: Any contracts, terms of service, or agreements related to the matter
6. Questions: Specific questions or concerns you want addressed

The more information you can provide initially, the more specific guidance we can offer during our consultation.