Counselor Convicted of Crypto Crimes: A former law firm partner who aimed to earn $50 million by age 50 has found himself facing up to 50 years in prison for his role in a crypto-related money laundering scheme. Mark S. Scott, a former partner at international firm Locke Lord, was convicted in U.S. federal court in New York of laundering $400 million in proceeds of a massive international fraud scheme known as “OneCoin” through fraudulent investment funds that Scott set up and operated for that purpose, according to the U.S. Attorney’s Office. Scott received more than $50 million for his money laundering services, which he used to buy luxury cars, a yacht, and several seaside homes.
“Scott … used his specialized knowledge as an experienced corporate lawyer to set up fake investment funds, which he used to launder hundreds of millions of dollars of fraud proceeds. He lined his pockets with over $50 million of the money stolen from victims of the OneCoin scheme. Scott, who boasted of earning ‘50 by 50’ now faces 50 years in prison for his crimes.”Manhattan U.S. Attorney Geoffrey S. Berman
Recognizing Crypto and Smart Contracts: A U.K. panel issued a report this week on the legal status of cryptocurrency and smart contracts. The U.K. Jurisdiction Taskforce of the Lawtech Delivery Panel concluded that cryptocurrency should be considered legal property, which means that it can receive the same treatment under the law as other assets in circumstances such as bankruptcy or theft. The panel also recognized that smart contracts can be treated as legally enforceable in the same manner as other more traditional contracts.
China Cracks Down on Crypto: China’s central banking authority has announced a further crackdown on cryptocurrency, according to a report from Reuters. The People’s Bank of China said in a statement that “the issuance, financing and trading of virtual currencies involve multiple risks.” The crackdown comes shortly after officials in Shenzhen announced a similar crackdown and as the RBOC prepares to offer its own cryptocurrency.