An Account or Assets Were Blocked on a Platform
The service rules, reasons for the restriction, transaction history, review procedure and available claim mechanisms need to be assessed.
DIGITAL ASSETS
Crypto Lawyer for Disputes, Transactions and Digital Currency
Was an account or transfer blocked, did a crypto transaction lead to a dispute, is a bank asking about the source of funds, do you need to prove ownership of digital currency or address tax issues? We first reconstruct the factual chain of operations and determine which documents and digital data can support your position.
We handle disputes involving cryptocurrency and other digital assets, P2P operations, account restrictions, bank compliance, taxation, mining and the legal architecture of digital projects.
WHAT HAPPENED?
A Crypto Dispute Starts with the Facts, Not the Name of the Coin
The same transaction may be part of a purchase, investment, settlement between individuals, fraudulent scheme or evidence of the source of funds. The legal structure depends on the facts.
You Transferred Cryptocurrency but Did Not Receive the Agreed Performance
The parties’ agreement, transfer of the digital asset and the content of the other party’s obligation need to be proven.
A Bank Is Asking about the Source of Funds
Questions arose regarding incoming funds after P2P operations, sale of digital currency or transfers between participants in a transaction.
Crypto Assets Were Stolen or Withdrawn
We first preserve transactions, addresses, correspondence and the circumstances of access to the assets, and then determine the possible legal protection routes.
You Need to Address Tax Issues
The acquisition, sale or other disposal of digital currency needs to be reconstructed and the documents supporting income and expenses identified.
You Are Launching a Crypto or Blockchain Project
The legal model of the product, user relationships, handling of digital assets and regulatory restrictions need to be determined.
Nikolay NemkovManaging Partner, Konsultant Law Firm
NIKOLAY NEMKOV ON CRYPTO DISPUTES
A Blockchain Transaction Is Visible. Its Legal Meaning Still Has to Be Proven
A network record may show movement of a digital asset between addresses, but by itself it does not always answer who controlled the addresses, why the transaction took place, what the parties agreed and whether the counter-obligation was performed.
LOGIC OF A CRYPTO DISPUTE
Reconstruct the Transaction First. Determine the Legal Rights Second.
In an ordinary dispute, the parties often begin with a written agreement. In a crypto dispute, there may be no agreement in the usual form: arrangements remain in a messenger, money moves through a bank, the digital asset moves through a blockchain, and part of the operation may occur on a foreign platform. The entire chain must therefore first be assembled into one factual picture.
01
What the Parties Agreed to Do
Purchase, sale, exchange, investment, transfer of funds into management, payment or another economic purpose.
02
What Actually Happened
Which bank payments and blockchain transactions were made, to which addresses and in what sequence.
03
Who Participated in the Operation
We review available information about the counterparty, account holders, payment details and services used.
04
Which Protection Route Is Available
A formal claim, platform dispute, demand against a counterparty, application to public authorities, court proceedings or another legal route.
A transaction hash confirms an operation on the network. But to turn it into legal evidence, the transaction must be connected to specific persons and a specific obligation.
WHAT WE DO
What a Crypto Lawyer’s Work Includes
Crypto Transaction Analysis
We reconstruct the parties’ arrangements, bank payments, movement of digital assets and actual conduct.
Digital Evidence Analysis
We review transactions, wallet addresses, transaction history, correspondence, platform documents and other available information.
Counterparty Disputes
We determine the legal nature of the relationship and formulate claims where an arrangement was not performed.
Account and Transaction Restrictions
We analyze the reason for the restriction, platform rules and the available review procedure.
Bank Compliance
We help structure an explanation of the economic purpose of operations and documents supporting the source of funds.
Tax Analysis
We determine which operations need to be accounted for and which documents support acquisition, disposal, income and expenses.
Legal Support for Crypto Projects
We analyze the product’s legal model, user relationships, documents and regulatory restrictions.
Court Disputes
We build the evidentiary and legal position where the conflict requires court protection.
DO NOT MIX THE CONCEPTS
Cryptocurrency and Digital Financial Assets Are Not the Same Thing
In everyday language, different digital instruments are often described with the single word “crypto.” That is insufficient for legal analysis. Russian legislation regulates digital currency and digital financial assets separately, and the legal regime of a particular instrument depends on how it is structured and issued.
Digital Currency
A separate regulated object subject to specific rules on circulation, taxation and mining.
Digital Financial Assets
Digital rights issued and circulated within infrastructure provided for by Russian legislation.
Tokens of Foreign Projects
Legal classification depends on the structure of the instrument itself and the relationships between its holder, issuer and platform.
NFTs and Other Digital Objects
Legal assessment depends on what right or economic interest is actually represented by the digital record.
Before preparing a legal opinion, we first determine exactly which type of digital object is involved.
DIGITAL TRACE
Blockchain Shows Movement of an Asset. A Dispute Requires More Proof.
Public network data can show certain parameters of a transaction, but in court or a banking dispute it is usually also necessary to connect a blockchain address to a specific person and explain the economic purpose of the operation.
Transaction Hash
Identifies a specific operation on the relevant network.
Addresses
We record sender and recipient addresses and their role in the chain of operations.
Platform Account
Transaction history, profile data and other information may connect a user with specific actions.
Bank Payment
May support the fiat part of the transaction and the relationship between its participants.
Correspondence
Shows the subject of the agreement, price, payment details and subsequent conduct of the parties.
Other Documents
Agreements, receipts, exports, applications, service responses and documents on the source of assets.
A wallet screenshot may be useful, but the evidentiary position should not be built on a single screenshot.
P2P
The Money Came from One Person and the Cryptocurrency Went to Another — This Is Often Where the Problem Starts
In P2P operations, bank-money movement and movement of digital currency take place in different systems. Additional risk arises when the payer, recipient of the digital asset and account holder are different persons.
For analysis, we reconstruct:
- the listing or transaction terms;
- counterparty account data;
- bank details;
- time the money was received;
- address receiving the digital currency;
- transaction hash;
- correspondence between the parties;
- subsequent claims by the payer or bank.
A P2P dispute cannot be analyzed solely from a bank statement or solely from the blockchain. The two parts of the operation must be connected.
ACCESS TO ASSETS
If an Account Is Blocked, First Determine Who Restricted Access and on What Basis
Crypto platforms may apply procedures for reviewing users, source of funds and particular transactions. The specific procedure depends on the service rules, jurisdiction and circumstances of the operation.
Preserve the Restriction
Save notices, support messages and account status.
Identify the Reason
Determine which action or transaction led to additional review.
Collect Supporting Documents
Prepare documents on the source of assets and the economic purpose of operations.
Use the Platform Procedure
Prepare the request in line with the particular service requirements and available evidence.
We do not promise to “unblock any exchange.” The platform’s legal status, rules and basis of the restriction must first be understood.
ASSETS ARE GONE
If Cryptocurrency Is Stolen, the First Step Is to Preserve the Digital Trace
Where a wallet is compromised, fraud occurs, an investment scheme is used or assets are transferred to a fraudster, it is important to preserve addresses, transactions, messages and participant data as early as possible.
Where the Assets Left From
The original address or account and the circumstances of access.
Where They Went
Destination addresses and the subsequent traceable chain of transactions.
How It Happened
Phishing, disclosure of a seed phrase, remote access, investment scheme, false transaction or another scenario.
Who Was Involved
Accounts, phone numbers, bank details, correspondence and other identifiers.
What Has Already Been Done
Requests to support, the bank, law-enforcement authorities or other organizations.
Technical traceability of a transaction and the legal ability to recover the asset are not the same thing. The prospects depend on whether the participants can be identified and a real legal mechanism applied to them.
CRYPTOCURRENCY → RUBLES
For a Bank, the Key Issue Is Not the Word “Cryptocurrency,” but the Source of Funds and the Economic Purpose of the Operations
Regular incoming payments from different individuals, P2P operations and subsequent movement of funds may raise questions from a bank. In such a situation, the source of the digital assets, transactions through which they were sold and the connection between bank receipts and specific operations need to be reconstructed.
Depending on the situation, the explanation package may include:
- bank statements;
- platform transaction history;
- P2P transaction data;
- blockchain transaction hashes;
- documents showing acquisition of digital currency;
- tax documents;
- an explanation of the economic logic of the operations.
There is no single universal “cryptocurrency letter” suitable for every bank and every transaction.
TAX HISTORY OF THE ASSET
For Tax Calculation, the Acquisition History Matters as Well as the Sale Price
Russian tax legislation establishes specific rules for operations with digital currency. Where there is a significant volume of operations, documents allowing income, expenses and the tax base to be determined should therefore be reconstructed in advance.
How the Asset Was Acquired
Purchase, mining, receipt through another operation or another documented basis.
When and for How Much It Was Acquired
We identify available documents on the original cost.
How the Asset Was Disposed Of
Sale, exchange, transfer or another operation.
Which Documents Remain
Statements, platform history, bank operations and other evidence.
The statement “I bought this cryptocurrency several years ago” does not by itself prove tax expenses. The documented acquisition history has independent significance.
CRYPTOCURRENCY AS THE RESULT OF ACTIVITY
Mining in Russia Has Its Own Legal and Tax Framework
Digital-currency mining is regulated separately from ordinary purchase and sale of cryptocurrency. The legal assessment depends on the status of the person, the applicable tax regime, compliance with requirements governing the activity and proper documentation of the digital currency received.
Who Carries Out the Activity
An individual, individual entrepreneur or organization.
How Mining Is Organized
Own equipment, infrastructure or participation in another organizational model.
How the Result Is Recorded
Receipt of digital currency and subsequent operations need to be documented.
How the Asset Is Disposed Of
Sale or another disposal creates separate documentation and taxation issues.
Do not automatically apply the rules of ordinary cryptocurrency trading to mining — these are different tax and legal situations.
IMPORTANT FOR BUSINESS
An Ordinary Domestic Payment Model in Russia Cannot Simply Be Built Around Digital Currency
Russian legislation places restrictions on using digital currency as consideration for goods, work and services. A business model therefore cannot be built on the principle “we simply accept cryptocurrency instead of rubles” without analyzing the applicable legal regime.
Certain mechanisms may apply under special legal regimes and in foreign-trade activity, but they cannot automatically be transferred to ordinary domestic settlements in Russia.
The technical ability to accept cryptocurrency does not itself mean there is a legal right to use it in the chosen payment model.
BEFORE LAUNCH
The Legal Model Must Answer: What Exactly Does the User Receive?
Blockchain technology by itself does not determine the legal nature of a product. It is necessary to understand what the user receives: a digital asset, a claim right, access to a service, an investment instrument, an in-game object or another right.
Product
What the project technically and economically creates.
User
Which rights the person receives after payment or connection.
Money Flow
Where funds come from and which counter-obligations arise.
Documents
User Agreement, Privacy Policy, agreements and other documents must correspond to the actual product model.
Marketing
Public promises must not contradict the legal structure of the project.
Regulatory Restrictions
We assess whether Russian and, where necessary, foreign regulation applies.
A White Paper does not replace an agreement and does not by itself resolve the legal classification of the project.
CODE AND LAW
Automatic Execution Does Not Eliminate Legal Disputes
A smart contract may automate performance of certain conditions, but a dispute can still arise over the content of the agreement, an error in the code, authority of participants or whether the actual result corresponds to the agreed terms.
The legal analysis must therefore be carried out together with the technical logic, but not replaced by it.
“The code executed” and “the obligation was properly performed” are not always the same conclusion.
DIGITAL INHERITANCE
The Legal Right to an Asset and Technical Access to It Are Two Different Problems
After the owner of digital assets dies, heirs may face both a legal question concerning the composition of the estate and a technical question concerning access to the wallet or account.
Ownership
The deceased’s connection to the digital asset needs to be established.
Estate
Determine which property rights form part of the estate.
Access
An inheritance right does not automatically provide a seed phrase or account access.
Platform
If the asset was held on a centralized service, the documents and procedure of that particular platform matter.
Inheritance of a crypto asset cannot be reduced to the question “who knows the password.”
EXPERT COMMENTARY
Comments and Publications on This Practice Area
Nikolay Nemkov and the experts at Konsultant Law Firm comment in the media on issues related to this practice area.
A Framework for the New Legislation
Read Publication →Konsultant Law Firm
The firm has been practicing since 2007. We handle litigation and complex legal matters for businesses in Krasnoyarsk, Moscow and other regions of Russia.
Since 2007
in legal practice
1,000+
court proceedings
Across Russia
Krasnoyarsk • Moscow • other regions
PRACTICAL APPROACH
In a Crypto Dispute, Preserve the Data First. Argue the Law Second.
The more time passes after an operation, the harder it becomes to reconstruct accounts, correspondence, bank documents and the transaction context. The original data should therefore be preserved before a formal claim or court filing is prepared.
After that, digital events are translated into ordinary legal terms: who promised what to whom, what was transferred, what was received and which obligation remains unperformed.
A crypto dispute may be technologically new, but the court still needs understandable facts, evidence and a specific claim.
HOW TO START
How We Start Working on the Matter
01You Describe the Operation
What happened, which digital asset was used, who the other party was and what problem arose.
02We Reconstruct the Digital and Money Trail
We match transactions, bank operations, accounts, correspondence and documents.
03We Determine the Legal Structure
We identify what relationship arose between the parties and which protection route is available.
04We Implement the Strategy
We prepare applications, a formal claim, a position for the bank, documents for a public authority or court proceedings, depending on the situation.
MANAGING PARTNER
Konsultant Law Firm Lawyers
Managing Partner, Konsultant Law Firm
Nikolay Nemkov
More than 20 years of practice in complex property and corporate disputes. Practicing insolvency practitioner.
QUESTIONS AND ANSWERS
Questions for a Crypto Lawyer
Can a debt be recovered if settlement was made in cryptocurrency?
The prospects depend on the circumstances of the transaction and the evidence. The parties’ agreement, transfer of the digital asset, connection of addresses to the participants and the content of the unperformed obligation need to be established.
Is a transaction hash enough for court?
A hash confirms a specific blockchain transaction, but a dispute will usually also require the addresses to be connected to specific persons and the legal meaning of the operation to be proven.
What should be done if an account on a crypto exchange is blocked?
Preserve notices and the history of communications with the platform, determine the basis for the restriction and collect documents on the source of assets and the operations. The further route depends on the rules and jurisdiction of the particular service.
Can stolen cryptocurrency be recovered?
There is no universal answer. A blockchain may allow part of the movement of assets to be traced, but the legal possibility of recovery depends on identifying the participants, the location of the assets, the platforms involved and the available legal mechanisms.
Is it legal to buy and sell cryptocurrency in Russia?
The mere fact of owning digital currency and carrying out operations with it that are permitted by law is not the same as cryptocurrency being prohibited as such. At the same time, legislation establishes specific restrictions on its circulation and on using it as consideration for goods, work and services. Each particular transaction model needs to be assessed separately.
Is tax payable on cryptocurrency?
Operations with digital currency may create tax obligations. Calculation requires the way the asset was acquired, acquisition cost, subsequent sale or other disposal and the documents supporting the relevant figures to be taken into account.
Do you provide support under 115-FZ after P2P operations?
Yes. In such a situation, bank receipts need to be matched with crypto operations and documents prepared to support the source of funds and the economic purpose of the transactions.
Do you advise on mining?
Yes. We can analyze legal and tax issues relating to the organization of mining and subsequent operations with the digital currency received.
Which documents are needed for an initial review of a crypto dispute?
A brief chronology, transaction hashes, wallet addresses, platform account data, bank documents, correspondence and any documents supporting the parties’ agreement or the source of the assets. Do not send a seed phrase or private keys.
CRYPTO SITUATION REVIEW
We Will Reconstruct the Operation and Determine the Legal Route
Briefly describe what happened: a transaction, P2P operation, block, counterparty dispute, bank request, tax issue or crypto-project problem. State which transactions and documents have been preserved.