Virtual assets as the subject of a criminal offense: problems of definition and proof

Abstract

The article is devoted to virtual assets (cryptocurrency) as a subject of a criminal offense from the point of view of its definition and proof. It is noted that cryptocurrency is characterized by a high level of anonymity, since the personal data of the owners of electronic wallets (in particular, the user’s name or address) are not disclosed, and identification is carried out only using a unique set of characters, which does not allow to identify the person. At the same time, information about transactions is open, and all operations with cryptocurrency are anonymous and irreversible. That is, in a broad sense, cryptocurrency is a digital intangible asset that functions as a settlement system with a dynamically changing value, has a predominantly anonymous nature and is not under the control of central banks. The most famous cryptocurrencies include Bitcoin, Ethereum, Dash, Ripple, Monero, Litecoin, Augur, MaidSafeCoin, etc. At the same time, the most famous and expensive of them is Bitcoin – the first decentralized digital currency, created in 2008, which is used to exchange for goods or services using blockchain technology. And the exchange of cryptocurrencies for real money is carried out through online platforms, electronic payment systems or specialized exchange services. It was established that there are no other norms in the current criminal legislation that would directly mention virtual assets or cryptocurrency. In practice, this leads to the fact that investigators and prosecutors in criminal proceedings related to cryptocurrencies act in fact at their own discretion, making procedural decisions, carrying out the seizure of digital assets and organizing their storage without a clearly defined legal mechanism. As a result, the issue of the further legal fate of the seized crypto-assets remains unregulated and is resolved situationally. It is concluded that virtual assets (cryptocurrency) can be the subject of many criminal offenses. For example, fraud (when deception is used when selling or exchanging it for real currency), theft (secret theft of property using a certain computer program), extortion or illicit enrichment (since cryptocurrency can be easily converted into fiat currency, which is quite difficult to track later), etc.