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Domestic Violence: Different Types of Restraining Orders in NJ

If abuse is involved in a relationship, it is definitely an important part of the criminal charges that may result. The attorneys at Goodgold West & Bennett LLC can help you to understand how the abuse might play into your case.

In many cases, abuse will result in filing a restraining order. There are different types of restraining orders in NJ. The type of restraining order you may have filed against your ex will be a significant piece of evidence when you finally go to court. A criminal defense attorney in Millburn can help you better understand the many details that will play a part in a court case.

This quick guide will help you better understand the differences between the types of restraining orders in NJ. Keep reading to learn more.

Temporary Restraining Order NJ

When someone is feeling threatened, harassed, or abused, the first legal step is often to file for a temporary restraining order. These are also sometimes called temporary ex-parte restraining orders. These can be issued immediately.

A judge will usually issue such an order when evidence proves that someone’s life, health, or well-being is endangered.

This type of restraining order will last until the first hearing for a final restraining order. This can often happen in as soon as 10 days. Whether or not a final restraining order is issued will depend on the information provided to the judge at the hearing.

Even if you cannot physically be present in court, a judge may still be able to use a final restraining order. This can be done if you provide sworn testimony. Sworn testimony is provided by someone who represents you.

This is often done if you are physically or mentally incapable of coming. If you seek help from criminal defense attorneys in Millburn NJ, this will be important information to provide to them.

Final Restraining Order NJ

Once your case has gone to a hearing, both parties involved can tell their side of the story when evidence and testimony are presented to the judge. A criminal defense attorney must have all the significant evidence concerning your case before this hearing. After reviewing all the evidence, a judge will make a final decision concerning the restraining order.

The final restraining order does not have an end date. This means that it could last forever. The only way a final restraining order can be canceled only if one of the parties files a motion.

The purpose of this motion is to request that the judge put an end to the restraining order. The motion could also request that modifications be made to the order. A cancelation or a modification will only be done if the judge decides that all parties involved will be safe with the new orders.

Get an Immediate Protection

If you feel that your life is being threatened and you need immediate protection, it is crucial that you call 911. The police will be able to provide you with temporary protection until the proper legal actions can take place. If you have reached the police for protection, be sure you get documentation of the event to provide to your criminal defense attorney.

Goodgold West & Bennett LLC is a full-service law firm with combined legal expertise of more than 150 years. We have a broad experience in various practice are including cases of domestic violence. Contact us today and get the protection you need against violence.

August 24, 2022
Divorce and Technology

We rely on technology for just about everything. We need our tech for work, school, socializing, shopping, and pretty much anything you can think of. In fact, today, you can handle all of your day-to-day living activities from home if you want to. Despite all of the benefits, there is a downside to tech.

Tech can also make it easier to invade people’s privacy, harass them, and do other things to cause them pain and suffering. It can even make legal proceedings such as divorce much more complicated, or it can be helpful during a divorce.

The attorneys at Goodgold West & Bennett LLC are here to provide you with information on how to manage your divorce. This quick guide will help you better understand how tech can be used for good and bad during your divorce.

Benefits Of Tech

Regardless of all of the negative ways technology can be used, there are a few benefits to tech during a divorce.

You can use support group apps to help you find a community of supporters during your divorce. It is very important for your mental health that you feel supported and knows that you are not alone in your struggles. It is often easier to find these supportive communities online than locally.

You can also find apps and supportive communities to help if you are going to be a single parent following your divorce. A Millburn divorce attorney will have a lot of helpful information as you embark on this new journey.

Downside of Tech

Most people who have gone through a divorce will tell you that social media can and will often be used against you during a divorce. Many people wonder if they can use text messages in divorce court. Millburn divorce attorneys can provide you with a clear understanding of just how text messages and social media can be used both in your favor and against you during your divorce.

It is often recommended to be very careful with how you use social media during your divorce. It is very important to choose what you post about carefully. This can help protect you from an invasion of privacy during divorce.

Many people also blame technology, cell phones, and the internet for contributing to the weakening or destruction of their marriages. The divorce rate due to cell phones is on the rise. As more and more spouses use cell phones and tech to participate in inappropriate behavior or activities online. Online activities that often weaken or destroy marriages include viewing porn, communicating with extramarital partners, flirting online, and gambling online.

Your Tech Activities and Divorce Proceedings

It is best to keep your online activities above board both before, during, and after your divorce. The best way to ensure that people do not have ammunition to use against you is to never provide the ammunition in the first place. Make an effort to keep your online and real-life activities wholesome and beyond question.

This is always the best way to simplify your life and make it easier to answer for your actions.

If you have participated in unsavory behaviors online and your spouse has proof of these activities, you will want to talk with a divorce attorney to find out how to minimize the damage.

If harmless online activities are being misconstrued to hurt you during your divorce, a knowledgeable divorce attorney will be able to fight for you.

A divorce is one of the most stressful things you’ll ever go through. There are a few ways you can make this experience less horrible with the contributing impact of technology.

Watch your behavior online. If you do not want your ex to have harmful information to use against you in court, then you should make sure that your behavior both online and in real life is above accusation. You should put aside any feelings of revenge during your divorce so that this legal proceeding can be resolved quickly and peacefully. If you are in need of a divorce attorney, please contact Goodgold West & Bennett LLC.

August 12, 2022
Ronion Brown: Fall 2022 Social Justice Scholarship Winner

Ronion’s Winning Essay:

Becoming an advocate and service to others in the disabled community is my purpose. Being born with mild cerebral palsy influenced my passion for becoming a mentor for disabled children. My condition did not allow me to have a normal childhood because I was restricted from many activities. Although I have progressed with support from my doctors and family, achieving my dreams has not been easy. I plan to launch a daycare and community center for young children that will allow me to support children who have similar circumstances.

My education will allow me to thrive in my career of molding children’s lives. I love the idea of teaching and guiding young children. They will learn skills to become successful individuals. My community and daycare center will offer services to assist them with any issues. The focus of my organization is addressing the needs of those with Cerebral Palsy and other development issues. The services in my organization will increase their overall development according to the needs of each child. My goal is to build a community for children to call their second home and view each other as equal while receiving guidance and resources to prepare them for the future.

I have also joined organizations at my university to receive concrete preparation for my future career and support important causes in the community. The Beacon Club advocates for disabled students on campus to promote that disability does not mean disabled, but differently-abled and within everyone’s ability to be inclusive. Similar to my mission of educating and guiding developmentally impaired children. I joined the Beacon Club because this organization represented me and my career goals to guide children. The Collegiate Entrepreneurs Organization is an intellectual and service-oriented organization founded to inspire, educate, and cultivate knowledge. This organization helps members develop an entrepreneurial spirit and a dedication to the stakeholders of the University of Louisiana at Lafayette as well as the Greater Acadian region. Students gain insight through guest speakers, interaction with local businesses, workshops, and networking events. I joined the collegiate entrepreneurs’ organization to prepare me for the business portion of my career.

To achieve my dreams of launching a daycare and community center is not about gaining a career but transforming the lives of disabled children. Teaching children is essential because they are not influenced by their environment or society’s standards. Children are the future and should have access to an equal education regardless of their circumstances. So, guiding disabled children to success will become my mark. We will prove that a disability does not mean inability together and eliminate the stereotypes of the disabled community.

August 4, 2022
The Voyager Bankruptcy: Your Questions Answered

On July 5, 2022, the popular cryptocurrency services firm Voyager filed a petition for Chapter 11 bankruptcy. With over three million customers, Voyager’s bankruptcy has had rippling effects throughout the cryptocurrency industry. The Law Offices of Andrew Dressel LLC has received numerous inquiries from affected customers, as well as others within the industry, about what could happen going forward and what Voyager customers could do to protect themselves. This blog is designed to answer some of the most common questions.

What is/was Voyager?

Voyager is a family of companies providing financial services in the cryptocurrency industry. Specifically, Voyager provided three main services: (1) it was a broker, allowing buyers and sellers of various crypto-tokens to match with each other; (2) it provided deposit services, whereby depositors could store their crypto-assets while earning interest; (3) it provided lending services by which customers could borrow tokens and pay interest. In layman’s terms, Voyager was a “crypto-bank.”

What Went Wrong?

While Voyager has largely been the victim of an overall downturn in the crypto-markets, the real deathblow has come from the fall of the Singapore-based hedge fund Three Arrows Capital. Three Arrows had invested hundreds of millions of dollars in the Luna token, developed by Terraform Labs. Luna was backed by TerraUSD, a “stablecoin” tied to the value of the US dollar.

However, due largely to panic selling during the general crypto downturn, TerraUSD became unpegged from the dollar, leading to a collapse in TerraUSD and a subsequent collapse in Luna. This led to huge losses for Three Arrows and equally huge losses for one of its largest lenders, Voyager.

On June 23, 2022, Voyager first signaled its troubles to customers by lowering its withdrawal limit to $10,000 (it had previously been $25,000). On July 1, 2022, Voyager suspended all trading, deposits, and withdrawals. On July 5, 2022 it filed for Chapter 11.

What is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is a process by which a business can be reorganized in order to be in a position to better pay out its creditors. It does not mean that the company is without assets, it simply signals that the company at issue is in significant financial distress and requires reorganization. The most important effect of the Chapter 11 petition is the automatic stay on collections efforts by creditors.

Are the Customers Creditors?

The present petition lists customers as creditors, but it is unclear precisely how these creditors will be treated under any proposed reorganization. It seems Voyager may be approaching this reorganization by taking the position that it is a broker/dealer operation, in which case customers would have some priority of claim. However, there are other large creditors out there, including Sam Bankman-Fried’s crypto-fund, Alameda Ventures. Those creditors may seek to oppose such a designation in order to receive priority on payment. The potential is there for lengthy litigation over these very unique bankruptcy issues.

What Can a Voyager Customer Do?

Unfortunately, the bankruptcy process can be a lengthy one, and this one appears set to be especially contentious. Bankman-Fried seems to be viewing this as an opportunity to acquire either Voyager or Voyager’s customers. Indeed, Bankman-Fried has sent out, via Twitter and other media, offers to Voyager’s customers about transferring their assets to FTX, Bankman-Fried’s rival platform. The Law Offices of Andrew Dressel LLC has no view on that offer, including whether it is a valid offer under United States bankruptcy law.

While we believe it is unlikely to matter much in the context of bankruptcy law, especially now that a bankruptcy petition has been filed, The Law Offices of Andrew Dressel LLC does believe it is a prudent move for customers to continue to contact Voyager’s customer relations team in order to express any interest in withdrawing funds or moving them to another platform, if a customer has such interest. Again, given the ongoing bankruptcy process, it is not our view that these requests are likely to result in any action on Voyager’s part. However, our firm does not see the harm that could come in providing such a notice if it reflects a customer’s actual interest.

If you wish to discuss the Voyager situation further, please visit our website www.d-mlaw.com and complete an online contact form or call us at (848) 202-9323. The above is not intended to constitute legal advice and should not be relied upon as such.

August 4, 2022
Chapter 13 Eligibility in New Jersey
Chapter 13 bankruptcy is available for those who have exhausted all other options available and meet the requirements with an understanding of the repayment. If you are a New Jersey resident and you are having issues with your finances, filing Chapter 13 for bankruptcy may be an option you need to explore.

With the help of bankruptcy attorneys in Millburn NJ, you can get access to the most accurate information and legal counsel to help guide you through this process. Let Goodgold West & Bennett LLC assist you with your questions.

What is Chapter 13?

Chapter 13 refers to a federal repayment plan regulated at both the state and federal levels. There are rules and regulations put in place for the parties declaring bankruptcy, the creditors involved, and how to establish the repayment plan.

Based on considered priority and non-priority, it may require you to pay back some or all of your debt. In order to know what truly qualifies, you will need to have your debt and assets reviewed by a Millburn bankruptcy lawyer to prepare you for the plan.

Not everyone is eligible for Chapter 13 of bankruptcy, so you need to review the eligibility requirements first.

Am I eligible?

If you are pursuing Chapter 13, you need to first make sure you meet eligibility requirements. This includes the following:
- An individual US citizen
- Must be self-employed or operating an unincorporated business
- Meet secured and unsecured debt requirements
Maximum Unsecured Debts

In order to be eligible, the total amount of your unsecured debts must be equal to or less than $465,275.

Unsecured debt refers to your credit card debt, medical bills that are outstanding, bank loans, memberships, and any other debt you have acquired without having to provide any type of collateral for that credit. A Millburn bankruptcy lawyer can help you determine if you have unsecured debts if you are not sure.

Maximum Secured Debts

If you have posted collateral for some of your debt, that amount cannot be greater than $1,395,875 in total.

Secured debt refers to loans or liens given based on a property to assure the value of the loan. This will include things like your financed vehicle loans, mortgage, and other properties. With the help of a Millburn bankruptcy attorney, you can get the total value of your secured debt to make sure you meet requirements.

Current Income Taxes

Before you can file for Chapter 13 and get approval, your current tax status will need a review.

Any taxes considered delinquent will be open for review and access during the process. Your priority taxes, based on your income will need payment first. An experienced Millburn NJ Chapter 13 bankruptcy attorney can explain in-depth based on your personal tax situation.

For example, non-priority taxes consist of those that are not required to get paid right away and may not be part of your Chapter 13 repayment plan. It includes the following:
1. Any due income taxes due three years or older prior to your filing date for bankruptcy
2. Filed taxes with your income at the gross level
3. A taxing agent reviewed the tax prior to 240 days before the filing of the bankruptcy
Below are priority taxes guaranteed to your repayment plan.
1. Taxes from trust funds
2. Any sales taxes paid by consumers
3. Employment taxes related to you or your business
4. Tax refunds sent in error
5. Tax liens that were in place prior to the chapter 13 bankruptcy
If you are not sure if your taxes fall into one of these categories, a Millburn Chapter 13 bankruptcy lawyer can help you determine what actually qualifies.

At Goodgold West & Bennett LLC, you can expect to receive top-tier knowledge from our bankruptcy lawyers in Millburn NJ. We have years of experience helping other residents just like you get through Chapter 13 and make it as easy as possible. If you would like more information, contact us today for a free consultation.
July 29, 2022
How Chapter 11 Bankruptcy Uses Reorganization to Help Businesses with Debt
Businesses that reach a point of filing for bankruptcy can testify about the challenging circumstances that precede such a difficult decision. The federal bankruptcy code sets out the stipulations for bankruptcy filing for individuals struggling with debt.

Similarly, Chapter 11 Bankruptcy Millburn NJ, also sets out procedures for struggling businesses, offering such businesses a reprieve to reorganize and restructure their business debts. Noteworthy to point out that Chapter 11 has differences and similarities to Chapter 7 and Chapter 13 for a bankruptcy filing.

Suppose you are a business owner within the Millburn area. In that case, bankruptcy lawyers in Millburn NJ can advise you on the applicable differences in Chapter 11 bankruptcy laws before you file for bankruptcy. Goodgold West & Bennett LLC attorneys can guide business owners on the requisite process for a bankruptcy filing under Chapter 11. Read on about the eligibility for Chapter 11 bankruptcy, the procedure, and how to file for bankruptcy.

What is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is a “reorgan

ization” law that allows businesses to restructure debts and plan for debt payment arrangements while maintaining ownership of their businesses. Individuals can also qualify for Chapter 11 to process an orderly liquidation of assets.

Chapter 11 bankruptcy offers a better bargain for business owners to avoid severe alternatives of complete business closure and liquidation of assets. Business owners may apply to restructure their finances to save their businesses from total collapse if they do not qualify for a bankruptcy filing under Chapters 7 and 13.

All bankruptcy proceedings have non-dischargeable and dischargeable debts. Bankruptcy attorneys in Millburn NJ can advise you on how Chapter 11 can be applicable to reorganize mortgages and other liabilities where a debtor does not qualify for Chapter 7 and 13 bankruptcy filing.

Filing under Chapter 11 initiates an “automatic stay,” which halts the collection of debts until the formulation and confirmation of the repayment plan. Proceedings for filing under Chapter 11 are tedious, time- consuming and expensive.

Business owners intending to file should engage an experienced Millburn bankruptcy lawyer to discuss the rules and requirements to ensure a successful plan to repay their debts. Attorneys at Goodgold West & Bennett LLC Law Firm offer professional legal services and guidance to clients in Millburn, NJ, and surrounding locations.

Eligibility and Requirements for Filing for Chapter 11 in New Jersey

The “debtors in possession,” who are business owners, are the ones who file for Chapter 11. Occasionally, business creditors may file bankruptcy petitions when businesses can no longer cover their debts.

Individuals are also eligible for Chapter 11, although procedurally, it is cost-effective for individuals to pursue the bankruptcy process through Chapter 13.

Several requirements are necessary for businesses and individuals opting for Chapter 11 filing:
1. Fees: The current cost for Chapter 11 is $1,720 for filing and other applicable miscellaneous fees.
2. Credit Counseling: Similar to Chapters 7 and 13, a debtor in possession has to attend a credit counseling program within 180 days before filing for bankruptcy and show the developed repayment plan.
3. Payment Plan: Debtors in possession have to show the plan for debt repayment or declare an intention for the same according to the rules under Chapter 11.
4. Disclosure Statement: A disclosure statement is mandatory and needs filing with the court during the application process. The disclosure should indicate the businesses’ assets, liabilities, and proposed plans to allow the creditors to make an informed decision about the stated proposals.
The Disclosure Statement in Chapter 11 Bankruptcy Filing in NJ

A Millburn NJ Chapter 11 bankruptcy attorney can testify how crucial the disclosure statement is under Chapter 11. An inaccurate disclosure statement can result in a dismissed application. The disclosure statement should include:
- The business description
- Financial information of the business/individual
- The repayment plan
Other requirements for review under the submitted financial information include:
- Statements on insider transactions
- Analysis of the consequences of liquidating business assets
- Disclosure of all professional fees paid
- The applicable tax chargeable
Do you Need Help Filing for Chapter 11 Bankruptcy in NJ?

A Millburn bankruptcy attorney can assist you in filing for Chapter 11 bankruptcy and give your business a reprieve to avoid asset liquidation. Suppose you need legal services and advice within Millburn and the surrounding location.

In that case, it is essential that you speak to an experienced Millburn Chapter 11 bankruptcy lawyer to offer you the proper guidance and explain to you your options as a debtor in possession seeking bankruptcy under Chapter 11 of the bankruptcy code.

For all queries and guidance on filing for Chapter 11 bankruptcy, contact experienced bankruptcy attorneys in Millburn, NJ at Goodgold West & Bennett LLC or call us at 973-544-0800 to speak to one of our attorneys or to schedule an appointment.
July 15, 2022
MANAGING MEMBER PARTICIPATING IN WEBINAR ON COLLECTION LAW

Managing Member, Jonathan S. Goodgold, Esq. will be presenting as part of the National Business Institute’s April 8, 2022 webinar entitled Collection Law From Start to Finish—New Jersey Guide. Jonathan will be speaking on pre-suit collection strategies, the Fair Debt Collections Practices Act (FDCPA) and on collection litigation. Jonathan is a repeat speaker for NBI on topics relating to collection.

Jonathan is a business lawyer through and through and is a go to resource for other law firms and business owners. Leading the firm’s collection work in all areas and industries allows Jonathan to directly counsel business owners and their operations personnel on the most important item of business, the bottom line.

Jonathan can be reached at (973) 544-0800 ext. 104 or via email at jsg@mmgbblaw.com

April 5, 2022
Matthew Locke: Spring 2022 Social Justice Scholarship Winner

Matt’s winning essay:

I have worked with children and their families as a middle school teacher and basketball coach for the past seven years. From Brookyln to the Bronx to Chicago, immersing myself into diverse communities has essentially been at the heart of my job. Although I originally planned to attend law school immediately after graduating from college in 2012, I decided to spend a year teaching instead and genuinely enjoyed it so much that I decided to continue much longer. Besides my love for kids in general, the reason this work was so gratifying for me is because it gave me an opportunity to push, motivate, and inspire the youth who hold unlimited potential.

Ultimately, however, I decided that I could make a greater impact on the field of education with a law degree. I am particularly sensitive to issues relating to children who deal with trauma, and my interest in family law stems from my desire to ensure all kids feel safe both at school and at home. I come from a large family—my parents had six children and adopted three children as well. To this day, I admire the resiliency and positive attitude of my adopted siblings who were unable to meet or establish a healthy relationship with their biological parents. Yet my teaching experience has shown me that there are too many children who deal with trauma in ways that affect their ability to learn, and they often do not have someone who will strongly advocate for them. In many cases it seems that the legal system has failed these children, and I am hoping to be a part of the solution.

I grew up in the south suburbs of Chicago and have lived on the south side of Chicago for the past two years. I currently work part-time for my state representative in the 33rd district of Illinois, which includes parts of Chicago. This community is very special to me. While I cannot say for sure what I will be doing ten years from now—practicing family law, working for the Department of Education, going into politics, or opening my own school—I can say for sure that my desire is to work in a way that gives back to the children and families in Chicago.

January 19, 2022
Cryptocurrency Courtroom Tales: $100 Million Judgement Victory

It’s not often that a defendant will label a $100 million dollar judgment against him as a “victory,” but it’s a surprising result of current cryptocurrency courtroom disputes. It was precisely the label Craig Wright attached to a jury’s award earlier this month in the action filed against him by Ira Kleiman, the brother of Wright’s business partner David Kleiman.

Anonymous Bitcoin Creator Unmasked?

Why would a $100 million dollar award be considered a victory? Because the plaintiff here was seeking an award of half of 1.1 million Bitcoin (BTC), a potentially staggering sum, worth well over $50 billion. But just as interesting is the theory behind the recovery. Wright has long claimed to be Satoshi Nakamoto, the still anonymous creator of Bitcoin, and Nakamoto, or some other very early Bitcoin miner, has a stash of 1.1 million BTC, created at the initial stages of Bitcoin mining, and untouched since. Wright’s claims have long been doubted, and Wright has not produced any firm evidence of his claim, but interestingly both parties took the position that Wright is Nakamoto in presenting their cases. Whether Wright is Nakamoto, a claim for which Wright has never put forth any evidence, was not actually an issue before the jury.

Plaintiff’s Attorneys Fail to Establish Early Partnership

So why isn’t Mr. Kleiman coming home with half of 1.1 million Bitcoin? Putting aside the issue of whether Wright is Nakamoto, Plaintiff still had to establish that Wright and David Kleiman had a partnership related to the creation of Bitcoin or the initial stages of Bitcoin mining. Based on the jury’s verdict, it appears that Plaintiff’s attorneys failed to do so. What they did establish, however, was that there was a joint venture, W&K Information Defense Research LLC, which was involved in the creation of software that helped make blockchain and cryptocurrency technologies possible. The fruits of those efforts entitled Plaintiff to $100 million.

Trial Just the Start of This Story

However, Plaintiff has another problem waiting in the wings. There are other members of W&K Information Defense Research LLC, including Wright’s ex-wife and his current wife, who dispute Kleiman’s ownership interests in that enterprise and his right to bring suit on that enterprise’s behalf. Depending on how those disputes play out, Kleiman’s recovery could be reduced even further. Those disputes are currently playing out in Palm Beach County court.

And then there is the question of how Wright will pay the $100 million verdict. Will it involve liquidation of BTC? And will it involve litigation of part of the 1.1 million BTC at issue in this matter? One can only guess what effect the liquidation of about 2,000 of those original BTC would have on crypto markets. As is usually the case after trial, the story is far from over.

The attorneys at The Law Offices of Andrew Dressel LLC are experienced litigators in the cryptocurrency and blockchain spaces. If you would like to contact one of our attorneys, please reach out via email at contact@d-mlaw.com, call at 848.202.9323, or visit our website www.d-mlaw.com.

Disclaimer: Please note that any legal question requires consideration of individual facts, and this article is not intended as legal advice to any individual or business and should not be relied upon as such.

December 28, 2021
SQUID Crypto Token and Dangers to Investors

The story of the SQUID crypto token is a perfect illustration of the opportunities cryptocurrency permits for scammers and the dangers it poses for investors.

The SQUID token was a game token, ostensibly used to play games within the internet environment made by the token’s creators. Like many game tokens, it had a play-to-earn system, but primarily investors were buying from other speculators, including the token’s creators. Tied to a pop culture phenomenon, the token quickly attracted buzz and its rise was truly meteoric. At its height, SQUID was trading at about $2,800. And then within ten minutes it was worth $0.

What Happened—Heard of a Rug Pull?

So, what happened? It was something called a “rug pull.” The creators of the coin sold off a large amount quickly, leaving no liquidity left in the exchange. Essentially this is a pump and dump for crypto and it is something that happens with some frequency in pop culture-based tokens. Indeed, the SQUID token story is a virtual beat-for-beat repeat of the MANDO (as in Mandalorian) token earlier this year. Again, there was a token tied to a hot IP property, again, there was hype and again, there were investors left holding the bag after the price plummeted—the classic “rug pull.”

Red flags were there for investors. The white paper and the website for the token were riddled with typos, which is a good indicator that this was something hastily put together to capitalize on a trendy topic. The token’s official social media accounts were also designed to prevent token holders from communicating their concerns. Moreover, the token system was designed to prevent non-insiders from selling. The SQUID token had to be converted to another token before it could be sold. This meant outsider funds were essentially locked up while insiders could sell off.

The SEC and its Role in Preventing Crypto Currency Scams

Scams such as these beg the question of when the SEC is going to step in and begin aggressively enforcing securities laws in the crypto space. These projects have gone well beyond the decentralized monetary future imagined by Bitcoin’s early adopters. New tokens are largely centralized plans tied to some sort of platform that is centrally managed, with gaming tokens being among the most popular versions of these centralized tokens. However, many purchasers are buying these tokens with an eye, not towards gaming, but towards investing.

Gaming is a perfectly legitimate use for blockchain-based crypto currency tokens. Projects like Zed Run and Decentraland are making a compelling case for in-universe tokens. But gaming tokens also have become a ripe environment for scammers and, unless the SEC or some other governmental entity is willing to exercise oversight, they will only become increasingly common.

The attorneys at The Law Offices of Andrew Dressel LLC are ready to assist people who lost money in crypto-based frauds or companies facing accusations of fraud. If you would like to contact one of our attorneys, please contact us via email at contact@d-mlaw.com, call at 848.202.9323, or visit our website www.d-mlaw.com.

Disclaimer: Please note that any legal question requires consideration of individual facts, and this article is not intended as legal advice to any individual or business and should not be relied upon as such.

December 10, 2021