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Thread: Crypto Currency, the ULTIMATE Legal Minefield

  1. #1
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    Crypto Currency, the ULTIMATE Legal Minefield

    To Err is to be human, to really screw up takes a computer

    Crypto currencies have the capability of creating the ultimate world wide legal mine field. There is something called claw backs in financial schemes where the victims can force people that profited more than the money they put in, to pay out all ill gotten profits. It has been used in a number of high profile cases spanning borders, most famously the Bernie Madoff case, where tens of billions were recovered. Block Chain should offer the lawyers a field day. Being international, this will be an especially big mess. I feel this is why none of the big data center companies are doing crypto currency mining, for they know when this blows sky high, it will be a convoluted, distorted legal mess involving more jurisdictions than one can count. The fact that all transactions travel and are traceable across many jurisdictions should take jurisdiction shopping to an art form. Already the cracks are appearing in this mess and it will only get worse. It will also establish a blue print for how to keep ill gotten gains and what methods and jurisdictions to use. It should also make for some very interesting legal software. I hope no manufacturers have endorsed or promoted their equipment for this purpose for that could present some interesting legal precedence in it's own right. This could also apply to data centers hosting it. This has the possibility of being call "The Crypto Currency Lawyer's Full Employment Act". The number of legal questions arising over crypto currencies is expanding right now at an exponential rate, but I haven't heard any one mention claw backs. Crypto currencies have already been declared a fraud by many top names and executives in the finance industry, Jamie Dimon, head of JP Morgan Chase among them. Any comments solicited and appreciated, for I really don't understand how people will pay real money for something conjured up out of thin air, except for rampant speculation.

    Another danger is that a country or countries declare them a security, opening a Pandora's box or regulations, penalties and quite possibly even criminal action. Cryptocurrencies are definitely a Wild West play legally.

    I see lawyers world wide drooling at the avalanche of lawsuits that may result from coming mess of epic proportions and headaches and financial destruction for many.

    The Fallout From Madoff's Fraud Includes an Ironic Twist for Investors - Bloomberg

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    Last edited by Arthur Hanson; 10-09-2017 at 05:38 AM.
     

  2. #2
    Blogger Bernard Murphy's Avatar
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    Agreed - there seem to be many problems with this area. Good example of the technology only being a small part of what is needed. Certainly China seems to be cooling fast on the idea

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  3. #3
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    The crypto currency has now degenerated into mass hysteria/insanity. I predict a very ugly conclusion to this mess. Only a few central banks have to rule this illegal. The other option is that this craze gets large enough and dangerous enough that the blow up hurts everyone.

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