The Rise of Wire Fraud Charges in the Crypto Industry

In a surprising turn of events at the end of 2022, federal prosecutors brought charges against Sam Bankman-Fried, a prominent figure in the crypto industry, with wire fraud featuring prominently in the allegations. The swift action taken by Manhattan US Attorney Damian Williams was made possible by leveraging the existing wire fraud law from the 1950s, underscoring its relevance in contemporary cyber investigations. This development points to the growing trend of utilizing wire fraud regulations to address criminal activities in the digital currency space, particularly as the legal landscape for cryptocurrency continues to unfold in courtrooms. The use of wire fraud statutes serves as a means to close regulatory loopholes and hold accountable those involved in illicit activities within the cryptocurrency realm.