The experienced blockchain lawyers at KSTechLaw represent fintech startups, digital token issuers, and their owners in connection with subpoenas, investigations, and enforcement actions directed at blockchain businesses by prosecutors and regulators.
As the market for cryptocurrencies and digital tokens has grown immensely over the last decade, regulatory interest in the blockchain industry has also increased. Federal, state, and local regulatory and prosecutorial agencies throughout the United States have moved to assert their jurisdiction over virtual currencies, initial coin offerings (ICOs) aka security token offerings (STO) aka digital security offerings (DSO), as well as the related marketing, broker-dealer, secondary trading, and other activities.
Typically, blockchain startups or fintech firms learn of a government investigation by way of a subpoena or informal inquiry. This is a crucial moment that cannot be ignored lest an investigation spiral out of control. Instead, it’s the key time for the company receiving the subpoena to hire legal counsel experienced in handling this delicate and potentially serious inquiry. That often means counsel who have worked in government, who know the language, personalities, and procedures. In short, clients need to meet the inquiry head-on. It will not go away on its own.
Government subpoenas usually require the production of documents and, often, a personal appearance for testimony. Client’s response to this initial inquiry should never be dealt with cavalierly or cursorily. Instead, the response should often be preceded by an internal investigation. And then, if appropriate, counsel should engage with the government. But if attempts to quietly address government concerns are unsuccessful, it becomes necessary for lawyers to face the government in litigation.