Available To Serve You Nationwide On All Federal Cases
This page was written, edited, reviewed & approved by Karren Kenney following our comprehensive editorial guidelines Karren Kenney, the Founding Partner, has 30+ years of legal experience as a criminal defense attorney.
As cryptocurrency continues to dominate financial markets and attract mainstream investors, law enforcement agencies and federal prosecutors have stepped up efforts to combat crypto-related crimes. Unfortunately, in this rush to crack down on fraud, many innocent individuals are being wrongly accused of crypto fraud.
Whether you’re a developer, trader, influencer, or simply someone who invested in a new coin or DeFi project, being accused of crypto fraud can be devastating. You could suddenly find yourself under federal investigation, facing asset freezes, or even indicted for crimes you didn’t commit—all because of your association with a project or online transaction that raised government suspicion.
At Kenney Legal Defense, we know that not every crypto transaction is criminal. The complexity of blockchain technology, combined with the novelty of federal regulations, often leads to misunderstandings and wrongful allegations. This page explains what crypto fraud accusations mean, why false charges happen, and how an experienced federal defense attorney can protect your freedom and your reputation.
Crypto fraud encompasses a wide range of offenses involving deception or misrepresentation in cryptocurrency transactions or investments. Federal prosecutors often use traditional fraud statutes—such as wire fraud (18 U.S.C. § 1343), securities fraud (18 U.S.C. § 1348), or money laundering (18 U.S.C. § 1956)—to pursue alleged crypto-related crimes.
Common allegations include:
However, in many cases, individuals are wrongfully swept into federal investigations simply because they were investors, employees, or developers in a project that turned out to be fraudulent—without any intent to deceive anyone.
Federal crypto fraud investigations often begin with broad subpoenas or blockchain tracing analyses that link multiple wallet addresses, transactions, or social media profiles. Unfortunately, this type of evidence is not always reliable.
Here are some of the most common ways innocent people become falsely accused:
Cryptocurrency projects are often decentralized, involving hundreds of contributors worldwide. Prosecutors sometimes assume that anyone connected to a fraudulent project was knowingly involved in wrongdoing—even if that person had no role in handling funds or making investment decisions.
For example, a marketing consultant who promoted a legitimate-looking token may be accused of participating in a fraud simply because the project’s founders later disappeared with investor money.
Blockchain records are public and permanent—but they can also be misleading without the right context. Federal agents use blockchain analytics tools to trace funds, but these tools can’t always identify the intent behind a transaction.
Someone moving crypto between personal wallets or decentralized exchanges might appear to be “laundering money” when, in reality, they were just transferring their own assets for privacy or convenience.
Cryptocurrency regulation is still evolving. Actions that were perfectly legal a few years ago—like operating a small token exchange or earning yield through decentralized finance (DeFi)—might now fall under regulatory scrutiny.
Many defendants find themselves facing retroactive enforcement, where prosecutors apply newer interpretations of securities or money-transmission laws to older conduct. These shifting legal standards often result in unfair criminal charges.
Crypto influencers, YouTubers, and online traders often discuss or promote digital assets. If one of those assets later becomes part of a fraudulent scheme, authorities may claim the influencer “misled investors,” even if they believed the project was legitimate at the time.
Public statements taken out of context can easily become “evidence” of intent to defraud—especially when prosecutors are eager to make headlines.
Even before a conviction, being accused of crypto fraud can destroy your reputation, career, and financial stability. Federal authorities can:
If convicted, crypto fraud defendants can face decades in federal prison, millions of dollars in fines, and permanent asset forfeiture. The reputational damage can be equally devastating, making it nearly impossible to rebuild your professional or financial life.
This is why it’s critical to act quickly and retain an experienced federal defense lawyer the moment you learn you are under investigation.
Defending an innocent person in a crypto fraud case requires deep understanding of both federal criminal law and blockchain technology. At Kenney Legal Defense, we use a combination of legal expertise and technical analysis to uncover the truth behind complex crypto transactions.
Here are some of the key strategies often used to defend individuals falsely accused of crypto fraud:
Fraud charges require proof of intent—the government must show that you knowingly and willfully intended to deceive others for financial gain. Simply making a mistake, investing in a failed project, or being associated with a fraudulent entity does not meet this standard.
A strong defense focuses on demonstrating good-faith conduct—that you believed the project was legitimate, disclosed relevant information honestly, and never intended to mislead investors or participants.
Blockchain data can be complex and prone to misinterpretation. Transactions might appear suspicious without context, but with the help of forensic blockchain experts, your defense attorney can reconstruct accurate transaction histories and demonstrate innocent explanations for transfers or wallet activity.
For example, what prosecutors call “layering” (a sign of money laundering) might simply be automated routing through multiple wallets to maintain user privacy.
Federal agencies like the FBI, SEC, and IRS-CI often conduct parallel investigations into crypto cases. However, their agents sometimes rely on unverified third-party blockchain analysis or algorithmic assumptions.
An experienced defense team can challenge these investigative methods, revealing gaps, errors, or bias in the government’s findings.
Because crypto laws are still developing, it’s often unclear whether certain actions are even illegal. Many so-called “fraud” cases are really regulatory misunderstandings—for example, the government later deciding a token qualified as a “security” when no clear rule existed at the time.
Demonstrating that you acted in good faith reliance on existing laws or professional advice can be a powerful defense.
In some cases, early intervention by your attorney can prevent charges altogether. If you receive a target letter or subpoena, your lawyer can communicate with federal prosecutors, provide clarifying evidence, and correct misunderstandings before an indictment is filed.
Quick legal action can make the difference between a dismissed investigation and a full-blown criminal prosecution.
At Kenney Legal Defense, founding attorney Karren Kenney has over 30 years of courtroom experience, including extensive work defending clients in federal white-collar crime cases. She understands how federal agencies investigate and prosecute alleged crypto fraud—and how to dismantle weak or circumstantial evidence.
Our defense approach typically includes:
When cases go to trial, we present a compelling narrative showing that you did not intend to defraud anyone and that the government’s blockchain evidence fails to prove otherwise.
If you’ve been contacted by federal agents or received notice of a crypto fraud investigation, take these steps immediately:
The earlier your lawyer becomes involved, the better your chances of avoiding an indictment or securing a favorable resolution.
The world of digital assets moves faster than the law. Prosecutors and regulators often struggle to keep up, and when they don’t fully understand how cryptocurrency works, they sometimes target innocent participants.
The desire to make “an example” out of high-profile cases leads to overcharging—accusing developers, traders, or promoters of crimes without sufficient evidence. In these situations, the right defense attorney can make all the difference.
Being falsely accused of crypto fraud doesn’t have to destroy your life. With skilled legal representation, you can clear your name, protect your assets, and hold the government accountable for overreach.
At Kenney Legal Defense, we provide personalized, aggressive defense for anyone facing allegations of cryptocurrency fraud, wire fraud, or related federal offenses. We combine legal strategy with deep understanding of blockchain systems to uncover the truth and fight for justice in every case.
If you’ve been targeted in a crypto fraud investigation or received a federal target letter, contact us today for a confidential consultation. We’ll review your situation, explain your rights, and begin building a strong defense to safeguard your freedom and future.
