Considerations on pyramid schemes in the space of crypto-assets and combating them Cover Image
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Consideraţii asupra schemelor piramidale din spaţiul criptoactivelor şi combaterea acestora
Considerations on pyramid schemes in the space of crypto-assets and combating them

Author(s): Victor Buju, Sorin Niculescu, Roxana Pistolea
Subject(s): Law, Constitution, Jurisprudence, Civil Law
Published by: Universul Juridic
Keywords: cryptocurrencies; deception; cyber fraud; pyramid schemes; precautionary measures; blockchain; asset seizure;

Summary/Abstract: This article examines how cryptocurrencies, despite their economic potential, also present a dangerous opportunity for criminals. The lack of regulation and expertise in this field has allowed them to establish a parallel financial system and develop new methods of committing crimes. It is demonstrated how one of the primary factors contributing to the rise in cryptocurrencyrelated criminality is anonymity and the lack of technical understanding among law enforcement authorities. This has facilitated money laundering, tax evasion, financing of terrorism, drug trafficking, and human trafficking, as such activities could be conducted without state surveillance and without involving the traditional banking system. The article highlights a concerning increase in cryptocurrency-related frauds in Romania, including investment projects that vanish after collecting funds from investors and pyramid schemes that deceive victims. Regarding the legal classification of these crimes, the article analyses the legal aspects related to cyber fraud and deception. It discusses the legal status of cryptocurrencies as currency or money and the effectiveness of precautionary measures, such as freezing assets, which can pose challenges in managing cryptocurrency-related fraud cases. In conclusion, the article underscores the importance of international cooperation in combating cryptocurrency-related criminality and the necessity of developing a robust legal and technical framework for handling these cases.

  • Issue Year: 2023
  • Issue No: 2
  • Page Range: 111-120
  • Page Count: 10
  • Language: Romanian