Cryptocurrency and Blockchain
Kostelanetz & Fink, LLP, represents clients who acquire, trade and sell cryptocurrency and who otherwise use blockchain technology. The explosive growth of cryptocurrencies (Bitcoin, Ethereum, etc.) over the past few years, and the rise in regulations and proposed regulations governing cryptocurrencies and crypto-assets, have triggered challenging tax and legal issues that we are hired to address on a regular basis.
Our deep technical experience in civil and criminal tax controversies enables K&F to provide unparalleled service to help clients adapt to this constantly changing industry. We advise clients regarding all manner of cryptocurrency transactions, including creating, acquiring and issuing tokens, digitizing assets, and other taxable and non-taxable events. In addition to providing planning and compliance advice, we also represent clients on matters involving cryptocurrency, in civil and criminal matters before the Department of Justice (DOJ) and the Internal Revenue Service (IRS), including advice regarding the filing of current and amended tax returns, initiating voluntary disclosures, or representing clients before the government in civil examinations and criminal investigations.
K&F also has a thorough understanding of the Government’s use of John Doe summonses in the cryptocurrency space, and the impact of those efforts on a client’s options for coming into compliance. Recent John Doe summonses to Payward Ventures Inc. and Subsidiaries d/b/a Kraken (Kraken), and Circle, as well as the prior summons on Coinbase, confirm the Government’s well-publicized campaign to identify those engaged in cryptocurrency transactions and to ensure compliance with U.S tax and reporting obligations.
We also advise clients on compliance and reporting obligations under the Bank Secrecy Act (BSA), Anti-Money Laundering (AML) rules, and Know Your Customer (KYC) requirements.
Our team includes former high-ranking officials from the DOJ Criminal and Civil divisions and the IRS, as well as attorneys with extensive knowledge and technical know-how in cryptocurrency and blockchain technology matters. This rich experience on both the prosecution and investigative side gives K&F unique insight into the government’s perspective, as well as the ability to effectively represent clients in every phase of a criminal investigation or regulatory enforcement action.
K&F has been recognized by major legal ratings agencies for its white-collar defense work. The firm, overall, has been recognized by Best Lawyers™ as a Tier 1 National “Best Law Firm” in three categories, Criminal Defense – White-Collar, Tax Law, and Litigation – Tax.
Cryptocurrency and Blockchain
Assist cryptocurrency investors on how to structure their holdings and residency to minimize their income tax liabilities.
Represent cryptocurrency miners, traders and investors with both domestic and cross-border activities on how to report their cryptocurrency transactions for federal income tax purposes.
Counsel cryptocurrency traders and investors in civil tax audits and/or criminal investigations conducted by the Internal Revenue Service.
Counsel cryptocurrency miners, traders and investors on whether and how to file amended returns and make voluntary disclosures.
Represent a cryptocurrency innovator and investor in a criminal tax fraud investigation being conducted by the Department of Justice.