Crypto Asset Investigations: Key Considerations And Pitfalls

Crypto assets are some of the most rapidly evolving and increasingly adopted assets in the world. Decentralized Finance (DeFi) is emerging as a blockchain-based alternative to traditional banking and financial services and has seen dramatic growth in conjunction with the growth and development of cryptocurrencies and blockchain technology. The associated regulation and guidance for investigation and enforcement is constantly evolving given the early-stage nature of this industry.

The crypto and DeFi industry has seen a growing number of regulatory enforcement actions as developers and founders push the boundaries of these fintech applications into areas of our existing financial regulations that were established well before the concept of crypto assets was contemplated. In the United States, the number of Security and Exchange Commission (SEC) enforcement actions related to crypto assets has steadily increased over the last decade, from a total of 11 between 2012