About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

13 FIU L. Rev. 1207 (2018-2019)
The Challenges of Cryptocurrency Asset Recovery

handle is hein.journals/fiulawr13 and id is 1231 raw text is: THE CHALLENGES OF CRYPTOCURRENCY ASSET RECOVERY Andrew W. Balthazor* ABSTRACT Cryptocurrencies, like Bitcoin, present challenges to plaintiffs seeking to recover these digital assets. No third-party intermediaries are involved in cryptocurrency transactions, and there is no controlling authority that can revoke or avoid a transaction once completed. The possessor of a cryptocurrency's private key-its password-has total and exclusive control over the account's assets. These digital assets cross jurisdictional boundaries without impediment. The features of cryptocurrencies make it easy for defendants to judgment-proof themselves and make these assets difficult to recover after a court has entered judgment. This comment explains cryptocurrency features relevant to asset recovery, explores pre- and post- judgment procedures as applied to cryptocurrencies, and suggests ways to mitigate the risks of this potentially difficult-to-recover asset. I. Introduction ............................ ............... 1208 II. Understanding Cryptocurrency. ................ ........ 1210 A. Bitcoin: The Original Cryptocurrency ............... 1211 1. Operational Features ................................ 1211 2. Security Features ..................... ...... 1215 B. Cryptocurrency Exchanges ........................... 1217 III. Enforcing Judgments Against Defendants with Cryptocurrency. 1219 A. Pre-Judgment Remedies .................. ....... 1220 1. Preliminary Injunctions, Generally...... ......... 1220 2. Asset Freeze Orders.. ......................... 1222 3. Receiverships.............................. 1224 4. Avoiding Fraudulent Transfers........... ........ 1224 B. Post-Judgment Enforcement...................... 1225 1. Execution, Levy, and Replevin........... ....... 1226 2. Judgment Liens .................... ....... 1227 3. Contempt of Court ..................... ..... 1229 J.D. candidate, 2019, Florida International University (FlU) College of Law; United States Military Academy, B.S. 1999. For help with my research for this article I would like to thank Professor Thomas Baker of the FlU College of Law, who sent me numerous articles regarding Bitcoin; my colleague Eve Peres Torres, whose assistance researching cryptocurrency cases was invaluable; my colleague and Law Review editor Lauren Odom, who provided very useful substantive feedback; and Professor Howard Wasserman of the FlU College of Law, who advised me regarding content and organization.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most