June 17, 2019 News

Jason Gottlieb Analyzes Legal Challenges for Investors When Cryptocurrency is Stolen

June 17, 2019 – Morrison Cohen Partner Jason P. Gottlieb commented on the new set of legal challenges faced by investors when cybercriminals steal digital assets in the article “Investors Have Slim Legal Path When Digital Coins Vanish” that appeared in the June 11, 2019 Law360.  As digital currencies are designed to be decentralized it is difficult for investors to know where to turn in case of a breach.  In addition, there is the problem of tracking down who stole the assets.

"In the absence of a regulatory regime governing what happens when cryptocurrency is stolen, you have people trying out new theories of liability," said Jason Gottlieb, a partner in the business litigation practice at Morrison Cohen LLP. "Some will work, and some won't."

"Anonymity is a huge problem," said Gottlieb, whose firm runs a webpage where it tracks cryptocurrency-related litigation. "If you have absolutely no idea who stole your money, how can you sue that person? How can you ever recover?"