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Fraud and money-laundering
What are the potential risks of virtual currencies in terms of fraud? How would these be addressed in your jurisdiction? Have any specific instances emerged in which virtual currencies have been used for money-laundering or other fraudulent purposes?
Fraud cases involving cryptocurrencies have stirred up considerable fear in Germany. Because cryptocurrency payments can be made anonymously, there is an assumption that this kind of payment is the reserve of criminals. Hacked or stolen crypto-wallets and the hacking of crypto-exchanges also cause anxiety for potential users, but these technical and psychological barriers are likely to be crossed soon.On the other hand, there are many scams involving ICOs, STOs, and TGEs. This is a very dangerous development for the whole crypto-world and it is important that lawyers, state attorneys, prosecutors, investors and regulatory offices work together to hold scammers liable for the damages that they cause or prevent them altogether. In Germany, and elsewhere across Europe, the first claims against the people responsible for multi-million euro crypto-scams are underway. If these claims are successful, it will strengthen trust in the legal system, which is important for the new investment instruments.
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