U.S. Regulator’s Crypto Conundrum Hurts Ransomware Victims

For Immediate Release

New York City | April 13, 2021

As Published on Forbes

Jason Nagi heads Offit Kurman’s FinTech and Regulation practice, and is the Chair of the firm’s Distressed Commercial Real Estate group.

Ransomware was invented 30 years ago when an AIDS researcher mailed between 10 and 20 thousand 5.25 floppy disks emblazoned with the name “AIDS Information Version 2.0,” to people and businesses around the world. Over the past 30 years, much has changed including our use of computers which now, instead of being attached to cathode ray television sets, fit into our pockets. The trajectory, from floppy disks in the 80’s, to e-commerce by the early 2000s, has culminated in the minting of digital money. Since then, as the use of cryptocurrency has grown, other industries have grown with it.

One industry, often overlooked, is ransomware. Ransomware is a plague on businesses world-wide. Indeed, the  U.S. government recommends not paying these ransoms. New guidance, however, issued by the Financial Crimes Enforcement Network (“FinCEN”) to the industry in late 2020, takes this too far; it threatens to impose sanctions on the insurance industry that has bloomed around cybercrime and will likely hurt the victims, not the criminals.

Click here to read the full article >>



At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we focus on furthering our clients’ objectives and provide timely services and within budget, all while focusing on the clients’ interests and goals.

Offit Kurman is one of the fastest-growing, full-service law firms in the United States. With over 230 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well-positioned to meet dynamic businesses' needs, as well as the needs of the people who own and operate them. We also provide representation of individuals and families in diverse matters ranging from estate planning and asset protection to intellectual property structuring and entrepreneurial start-ups. Our International Group provides clients with a broad range of services for transactions and dispute representation for clients worldwide, including Europe, Canada, Asia, Latin America, the Middle East and Africa.

At Offit Kurman, we distinguish ourselves by the quality, breadth, and global reach of our legal services — as well as our unique operational structure, which encourages a culture of collaboration and entrepreneurialism. The same approach that makes our firm attractive to legal practitioners interested in representing clients in the middle market, also gives clients access to experienced counsel in almost every area of the law and in many jurisdictions in the U.S. and abroad

Subscribe and follow us on our Blog, and on Facebook, Twitter, Instagram, YouTube, and LinkedIn. You can also sign up to receive LawMatters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.



Leave a Comment