Cryptocurrencies: Money, Securities Or Other Property?
By Leland Jones, Edward Brown and Bonnie Thompson ( February 23, 2018, 1:54 PM EST) -- A 24-year-old trader is facing up to 20 years in prison for wire fraud after being charged in connection with a scheme to use approximately $3. 2 million worth of his company's cryptocurrency for personal trading activities. [1] As with many employee embezzlement schemes, the employee allegedly felt "invincible" after a short market upswing and believed he could profit in trading with the company's resources. Ultimately, the employee is alleged to have confessed to being a "degenerative gambler," and his activities led his company to suffer net losses valued at $603,000. Given the recent volatility in cryptocurrency valuations (and human nature), other companies may find themselves discovering similar losses. For those companies, there is a key question they may face — is the loss of cryptocurrency covered by insurance? . . .
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