U.S. civil fraud judges are increasingly stepping in to freeze and recover stolen cryptocurrency as federal enforcement efforts decline, according to a new report. Retail traders are turning to the judiciary for protection, but the report highlights a significant gap in technical expertise and resources among judges to effectively manage the surge in crypto-related crimes.
The report cites the case of Hayden Davis, a meme coin promoter who managed to persuade a judge to unfreeze his crypto wallets, allegedly to continue fraudulent activities. While judges are making efforts to address these issues, the report argues that a more coordinated and effective solution is urgently needed to tackle the growing scale of crypto crimes.
U.S. Judges Increasingly Tasked with Freezing Stolen Crypto Amid Enforcement Gaps
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