person with their hand on a car steering wheel

Can You Get Insurance Without a License?

Legal AssistantPersonal Injury Law, Resources

Right off the bat, it is against the law to drive a car on a public road without a valid driver’s license. That said, you don’t need to have a license to get car insurance. While purchasing an auto insurance policy without a valid license might seem counterintuitive, a driver’s license is not the only reason why a driver might need car insurance.

Finding an insurance provider offering no license insurance will be a little harder than getting normal auto coverage; it is not impossible. Can you get insurance without a license? Here’s everything you need to know.

Reasons for Buying Car Insurance Without a License

To reiterate, driving without a license is illegal. Why, then, would someone who doesn’t intend to get behind the wheel need car insurance? Below are a few scenarios where getting a no license insurance policy might be in your best interest.

You Have a Health Condition That Prevents You From Driving

If you’re currently suffering from a health condition that prevents you from driving, it’s still a good idea to get protection even if you won’t be driving your vehicle for a while. Keep in mind that the whole point of car insurance is to protect you against potential financial loss if your vehicle is ever involved in an accident or theft.

Even if you put your car in storage for the duration of your recovery and your license expires in the process, you still want to get auto insurance to protect you in case anything happens to your vehicle while in storage.

Additionally, a lapse in coverage might mean paying higher premiums the next time you need insurance. Getting no license insurance for the period your vehicle remains parked is a foolproof way to prevent this from happening.

Someone Else Is Driving You Around

If you’re a senior who’s not comfortable driving or you’ve lost your license for whatever reason, you might get a younger caregiver or family member to chauffeur you around in your car. Even if you’re not the primary driver of your car, you still need to get an insurance policy to cover your vehicle.

That said, the average cost of car insurance increases as you get older. A cheaper alternative would be to let someone else take over as the primary driver of a car that’s registered to you. Listing someone else as the primary driver of your vehicle may not always be an option if the person who chauffeurs you around doesn’t form part of your household.

You’re a Student Driver With a Provisional Driver’s License

A teen driver with a learner’s permit still needs car insurance even if they’re technically not yet licensed. If you have a teen in your household learning to drive on your vehicle, it needs to be insured, especially if they’re taking it out on public roads.

It’s a good idea to consider adding your teen driver to your auto insurance policy as a provisional driver in case the unexpected happens.

You Don’t Drive, but You Have a Student Driver Who Does

Suppose you buy a car for your teen when they turn 16 and get their driver’s license. Even if you’re not the one who’ll be driving the vehicle, you still need to get auto insurance for it. Most states don’t allow vehicle owners to register their car with the Department of Motor Vehicles (DMV) without providing proof of insurance first.

If your teen isn’t old enough to be on their own policy, you would need to register them on the policy of someone else aged 18 years or older. If you don’t drive, your best bet would be to get a no license insurance policy and list them on it.

You Own a Vintage Vehicle That Sits in Your Garage

If you purchase a vintage car you don’t take out on the road, it still needs to be insured against theft or damage. Even if you’re keeping it as a prized possession (a collector’s item, if you will) and have no intention of driving it, it still makes sense to get a no license policy that covers non-collision situations, including vandalism or a tree falling on it and smashing the windshield.

You Have a Suspended License

If you have a sketchy driving record or get charged with a DUI/DWI, you could end up with a suspended license. In most states, you won’t get it back until you provide proof of financial responsibility in the form of an SR-22 certificate.

While this isn’t “insurance” per se, it proves to the court that you have the minimum liability no license coverage required by the state.

FAQ

Can I Buy a Car With No License?

Technically, it is possible, but it won’t be easy. The specific circumstances in which this can happen ultimately come down to the rules of the auto dealership. In most cases, you’ll need to show proof of insurance before you can seal the deal. They won’t even allow you to test drive the car without proof of insurance and, more often than not, a valid license. It’s a lot easier to drive it off the lot if you have a valid license.

Can You Register a Car With No License?

While there’s not much you can do without a driver’s license; you can buy and register a car in your name. This is a viable option for someone who may want to purchase and register a vehicle in their name but have a chauffeur, caregiver, or family member use it to drive them around.

What Is the Penalty for Driving Without a License?

It depends on your state laws and whether you’re a repeat offender. In most states, driving without a license is charged as a misdemeanor offense and may result in six to 12 months jail time, a fine of $1,000 to $2,500, or both. The court fine may be lower if it is charged as an infraction. Get in touch with a driver’s license lawyer as soon as possible to get the best possible outcome in your case.

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Gold Bitcoins surrounded by metal chains

Does the SEC Regulate Cryptocurrency?

Legal AssistantAdministrative Law, Business Law, Regulatory Law, Resources

As cryptocurrency continues to transform from an investment that was seen as purely speculative to becoming a common feature in balanced portfolios, governments worldwide are still divided on the best approach to regulating this emerging asset class.

The US is yet to develop a clear regulatory framework designed to protect crypto investors and keep these digital assets in check. The Securities and Exchange Commission (SEC) has previously stated that it classifies cryptocurrencies as securities and, therefore, are subject to securities laws.

This begs the question: Does the SEC regulate cryptocurrency? Here’s everything you need to know.

What Are Digital Assets?

A digital asset is a broad term that describes any store of value (asset) that exists in digital format. A crypto asset is a digital asset that utilizes the technology that cryptocurrencies are built on, referred to as a blockchain.

While every cryptocurrency is a crypto asset and every crypto asset is a digital asset, not every digital asset is a crypto asset, and not every crypto asset is a cryptocurrency. You will often come across digital assets that people commonly think of as cryptocurrencies. More often than not, this should not be the case for most of them.

For instance, some utility tokens are not supposed to be used as an investment in the theoretical sense of the word. Many of them are tokenized assets that are supposed to have value but aren’t supposed to be used as currency. Tokenized gold, tokenized securities, and crypto kitties, are examples of tokenized assets used as stores of value but are often used as cryptocurrencies.

Keep in mind that not every digital asset needs to explicitly rely on cryptography, meaning it falls into the broader category of a digital asset. The rule of thumb is that if it is digital and has value, it is classified as a digital asset. Cryptocurrencies, altcoins, stable coins, virtual collectibles, virtual assets, utility tokens, and security tokens are all examples of digital assets.

A digital asset can be differentiated from stock since the latter has strong connections to hard assets and are not inherently digital. Cryptocurrencies like Bitcoin and Ethereum are purely digital assets since they only exist in the virtual world.

Digital Asset Market

Blockchain technology is responsible for the birth of the digital asset market. It was the by-product of upgrading the internet with cryptocurrencies and decentralized technologies. This technology has been widely used to issue and trade Bitcoin, Ethereum, and other cryptocurrencies and offers users a wide range of attractive features to traditional securities issuers wishing to test out the digital asset waters.

The digital asset market presents a unique opportunity for mainstream investors who wish to expand their portfolios and invest in new asset classes.

US Crypto Regulations

Right off the bat, cryptocurrencies are not classified as legal tender. Instead, the Internal Revenue Service (IRS) describes them as a store of value, a unit of account, or a medium of exchange that exists in digital format. Based on this, the federal agency has issued tax guidelines on the same.

The Financial Crimes Enforcement Network (FinCen) also doesn’t consider crypto to be legal tender. Instead, FinCen’s primary focus is on crypto exchanges and defines them as money transmitters. This is based on the fact that crypto tokens are value substitutes for currency.

Crypto regulation is legal for cryptocurrency exchanges. These fall within the scope of the Bank Secrecy Act (BSA). Crypto exchange providers are required to:

  • Register with FinCEN
  • Implement an anti-money-laundering-and-countering-the-financing-of-terrorism (AML/CFT) program
  • Maintain the appropriate records
  • Submit periodic reports to the relevant regulatory authorities

Binance, Coinbase, Gemini, and Kraken are a few examples of regulated cryptocurrency exchanges in the US.

SEC Cryptocurrency Regulations

cryptocurrency concept

Following the release of the 2017 DAO report, the SEC indicated that it regards several cryptocurrencies, particularly those issued in initial coin offerings (ICOs), as investment securities.

DAO is short for Decentralized Autonomous Organization and was founded in 2016 by a group of developers. They believed that they could place the decision-making power into the hands of an automated system that relied on a crowdsourcing process. That way, the manipulation of investor funds and human error could be eliminated entirely.

The SEC strictly regulates securities trading. As a result, any individual selling, issuing, or even trading crypto tokens could be unwittingly violating investment laws. Technologies and trends in the blockchain space may change quickly.

The laws governing securities do not. Ripple, for instance, is currently elbow-deep in litigation over its XRP token. The company continued selling its XRP token even after the SEC’s warning. Several ICO firms have had to pay punitive court-mandated fines or opted to settle out of court.

Digital Assets and ESG Goals – The Role of the SEC

In addition to traditional regulation, there are three principal ways in which the SEC could use its oversight role in supporting the environmental, social, and governance (ESG) goals of investors.

SEC Blockchain Regulation

When an investor buys, sells, or otherwise transfers a digital asset, information about that transaction is recorded on the blockchain. Miners validate or “mine” those transactions by performing complex cryptographic calculations to ensure that those particular transactions are not double-spent or counterfeited.

The downside to this is—the mining process is energy-intensive and uses a significant amount of electricity. The SEC could require companies to migrate their digital assets to environment-friendly technologies.

Investor Protection

With digital assets under the jurisdiction of securities laws, the SEC would be able to address the rampant abuses within the digital asset market. It would allow the SEC to deal with abuses related to asset valuation through:

  • Accounting rules
  • Capital requirements for asset custody
  • Fraud prevention and anti-data manipulation rules
  • Government-regulated data sources
  • Information disclosure requirements
  • Information technology mandates
  • Market access
  • Securities Investor Protection Corporation (SIPC) insurance for up to $500,000

In addition to these requirements, the SEC could make listing standards on digital assets mandatory to protect investors.

Prevention of Tax Evasion, Money Laundering, and Criminal Activity

There’s a growing trend of digital assets being used for criminal activities, including tax evasion, money laundering, and criminal activity. Cryptocurrencies like Bitcoin gained notoriety for their ability to be used in the purchase of illicit products and services anonymously on the dark web.

By the SEC regulating cryptocurrency, they would be able to make it mandatory for US-based crypto brokers trading in digital assets to comply with various tax reporting and AML laws. Their failure to comply would result in license revocation.

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Blue flatbed truck on the road

What Is a Commercial Driver’s License?

Legal AssistantCriminal Law, Personal Injury Law, Regulatory Law, Resources

Before 1986, a major cause of fatal accidents on American roads was unqualified vehicle operators. At the time, several of the drivers were able to escape liability for irresponsible driving since they held multiple driver’s licenses issued by different states.

The Commercial Motor Vehicle Safety Act of 1986 was passed for this very reason. It established a nationwide system that would standardize the issuance of driver’s licenses in all states and hold interstate truck drivers accountable for breaking the law and subject them to more stringent punishments they previously escaped.

What is a CDL license, and how does it work? This article explores everything you need to know.

What Is a CDL License?

A commercial driver’s license or CDL license for short is a special type of driver’s license that authorizes drivers to operate large heavy or hazardous material vehicles in the United States. There are several different types of vehicles that would be classified as commercial motor vehicles (CMV). Vehicles like buses, tank tracks, and hazmat vehicles can only be operated by drivers who hold CDL licenses with proper endorsements authorizing them to operate these categories of CMVs.

For instance, to operate a vehicle fairing radioactive substances, explosives, or flammable liquids, you need to apply for a CDL and receive the relevant endorsements of a rising you to drive these CMVs.

  • To get an endorsement, drivers must pass a specialized driving skills test and a specialized knowledge exam to obtain endorsements. Some of these endorsements include:
  • Passenger (P) endorsement that allows you to drive passenger vehicles
  • Tank (T) endorsement that allows you to drive transferring liquid cargo
  • Hazardous materials (H) endorsement that allows you to drive trucks fairing radioactive substances, explosives, flammable liquids, or any other substance classified as hazmat.
  • School bus (S) endorsement that allows you to drive buses carrying school-going children

To obtain any of these endorsements, you will need to successfully complete a training program from any FMCSA-approved training provider. Drivers applying for an S endorsement are also required to undergo a thorough background check in addition to completing the training program.

Types of CDL Licenses

Below is an overview of the various types of commercial driver’s licenses you can get in the US.

CDL Class A License

A Class A CDL license allows licensed drivers to operate any combined group of vehicles with a cumulative combined weight rating, also known as Gross Combination/Combined Weight Rating (GVWR) of 26,001 lbs. or more. Drivers with a CDL Class A license can drive:

  • Flatbeds
  • Livestock carriers
  • Tank vehicles
  • Tractor-trailers
  • Truck and trailer combinations

Drivers with Class A CDL licenses that receive proper endorsements can also drive various Class B and Class C vehicles.

CDL Class B License

A Class B CDL license allows licensed drivers to operate single vehicles with a Gross Combination/Combined Weight Rating of 26,001 lbs. or more. They can also tow a vehicle that weighs no more than 10,000 lbs. Drivers with Class B CDL licenses that receive proper endorsements may drive any of the following vehicles:

  • Box trucks
  • Dump trucks with small trailers
  • Large passenger buses
  • Segmented buses
  • Straight trucks
  • Tractor-trailers

Drivers with Class B CDL licenses with proper endorsements can also drive some Class C vehicles.

CDL Class C License

A Class C CDL license allows license holders to operate vehicles designed to transport a minimum of 16 occupants, including the driver. They are also authorized to transport hazardous materials as defined by federal law. Drivers with Class C CDL licenses with proper endorsements can operate any of the following types of vehicles:

  • Combination vehicles that don’t fall under Class A or Class B
  • Passenger vans
  • Small hazardous materials (hazmat) vehicles

The Commercial Motor Vehicle Safety Act of 1986

The Commercial Motor Vehicle Safety Act (CMVSA) was enacted in 1986 to address the then rampant issues caused by unqualified and irresponsible truck and bus drivers. These drivers, who at the time were licensed without undergoing adequate testing in most of the states, were found to be the root cause of fatal accidents and ongoing threats to other highway users.

More often than not, culpable drivers sought to escape liability for their actions on the road by holding multiple driver’s licenses issued by different states. As a result, they would spread the traffic violations and result in convictions among these licenses, therefore, sidestepping license suspensions and revocations.

In 1986, Congress passed the CMVSA Act to counteract these abuses by adopting a nationwide information system prohibiting drivers from holding multiple driver’s licenses. The new law also allowed different states across the country to exchange information on traffic violations and convictions, making it easier to remove errant problematic drivers from the roads. Drivers who are found in violation of this law were also subject to tougher penalties.

Additionally, the CMVSA required states to adopt a uniform testing standard that all commercial drivers would have to undergo prior to licensing. Serious traffic violators would also be sanctioned to ensure that commercial drivers are held accountable for traffic violations.

Drivers Required to Obtain a CDL License

Drivers operating any of the following vehicles are required by law to hold a CDL.

  • Any vehicle combination with a Gross Combination/Combined Weight Rating (GCWR) of 26,001 lbs. or more provided that the Gross Vehicle Weight Rating (GVWR) of the vehicle in tow weighs 10,000 lbs. or more
  • Any singular vehicle with a GVWR of 26,001 lbs. or more or any singular vehicle towing another that weighs no more than 10,000 lbs.
  • Any vehicle designed to transport a minimum of 16 people (driver included)
  • Any vehicle that’s required by law to be placarded when transporting hazardous materials

Gross Vehicle Weight Rating (GVWR) Definition

A vehicle’s GVWR refers to the maximum loaded weight or registered gross weight of a vehicle combination or that of a singular vehicle as specified by the manufacturer.

Gross Combination/Combined Weight Rating (GCWR) Definition

A vehicle’s GVWR refers to the GVWR or combined registered weight of the power unit and towed unit(s).

Drivers Exempt from Obtaining a CDL License

Under federal and state law, not all drivers are subject to the CDL licensing requirements. According to the Federal Motor Carrier Safety Administration (FMCSA), drivers exempt from the requirements of the CDL program will not in any way diminish the safe operation of CMVs on the highways.

Below is a list of vehicle operators who are not required to obtain a CDL.

Farm Equipment Operators

Farmers conducting legitimate farm-to-market operations are covered under this exemption. A CDL is not required to operate any vehicle:

  • Not used in the operations of a contract carrier or common carrier
  • Operated and controlled by a farmer, a member of the family, or an employee
  • Used in agricultural or nursery operations
  • Used to transport farm supplies products or equipment to and from the farm (aquaculture and nurseries included)
  • Used within a 150-air-mile radius of the farm

It’s important to note that drivers of truck tractor semi-trailers and members of their families who also operate truck tractor semi-trailers and meet the above criteria are also exempt from the CDL program.

The drivers need to be aged 21 years or older, and the vehicle in question needs to have some plates installed. That said, these drivers are still required to take CDL road, written, and skills tests before licensing.

Fire-Fighting Equipment Operators

Firefighting organizations usually subject their equipment operators to extensive and intensive initial training and retraining requirements. Most states usually wave CDL requirements for operators of firefighting equipment operated or owned by government agencies when responding to or returning from emergencies.

Military Vehicle Operators

Any military vehicle operator or vehicle used for military purposes is exempt from obtaining a CDL.

Recreational Vehicle Operators

Individuals who own or operate an RV primarily for personal use are exempt from obtaining a CDL.

How to Get CDL License

A gray truck on the highway
Image Credit: Unsplash

If you’re interested in pursuing a truck driving career, here’s an overview of the CDL license requirements for licensing.

  • Age requirement: You need to be at least 18 years old to get a CDL license and at least 21 years old to be able to drive across state lines or ferry hazardous materials.
  • Clean driving record: You need to have at least two years’ worth of driving experience before obtaining a CDL license. Your driving record should not have any DUI/DUI reports, traffic violations, failure to appear in court, failure to pay child support, or license suspensions. If you are suspended, you should have refrained from driving for the designated suspension period, completed a defensive driving program, and complied with the required reinstatement fees.
  • English comprehension: You need to be able to speak and read English.
  • Existing driver’s license: Before you can apply for a CDL license, you need to have a valid non-commercial driver’s license.
  • No criminal record: You need to pass a thorough background check before obtaining a CDL.
  • Proof of citizenship: You need to prove that you are a US citizen using a social security card or a birth certificate.
  • Physical and medical examination: you need to provide a valid medical examiner’s certificate indicating that you have acceptable eyesight and are in good general health.

In addition to the screening requirements, you will need to pass a written exam, a skills exam, and a driving exam. The written knowledge exam is a computerized CDL license test that consists of a series of standard multiple-choice questions. You will need to take additional specialized exams if you intend to operate any of the following vehicles:

  • Any vehicle with air brakes
  • Combination vehicles
  • Double or triple trailers
  • Hazmat vehicles
  • Passenger-carrying vehicles
  • School buses
  • Tanker vehicles

Any applicant who fails any CDL exam(s) three times is required to wait at least 30 days from the date of the last failed exam. If you still fail the same exam(s) three more times, meaning you now have six total failures, you will need to wait at least 90 days before taking the same exams again.

Three additional failures of the same exams, meaning nine failures total, results in a one-year waiting period before you can retake the same exams again.

How Long Does It Take To Get a CDL License?

The time it takes to get a CDL license depends on various factors, including:

  • Type of license required: Class A, Class B, and Class C CDL licenses authorize licensees to operate different types of vehicles. Depending on the CDL license training program you take, you can get a Class A license in 20 days.
  • The number of driving hours: Some states require the applicant to acquire a specific number of behind-the-wheel hours before getting a CDL license. The requirements for this vary by state.
  • The required endorsements: If you intend to drive special vehicles like trailers and passes, you will need to obtain additional adjustments in addition to the CDL license.

How Much Does a CDL License Cost?

The precise cost varies by state. The first thing you need to consider is the training cost. Depending on the school you are applying to, the license type, i.e., Class A, Class B, or Class C, and the specific endorsements you want, costs can run anywhere from $2000 to $8000.

These costs include the training program, medical exam, DMV fees, and testing fees. The cost for each endorsement is $10-$50, depending on the state you’re in.

CDL Insurance Requirements

CDL insurance is a must-have for commercial vehicle drivers and is a combination of different types of protection coverage. Here’s a list of what would typically be included in CDL insurance coverage:

  • Liability insurance
  • Physical damage
  • Comprehensive coverage
  • Cargo insurance
  • Collision coverage
  • Combined deductible
  • Earned freight
  • Loading and unloading
  • Loss mitigation
  • Non-trucking liability

The FMCSA requires interstate truck drivers to have specific minimum coverage limit requirements depending on the type of freight.

  • $300,000 for non-hazardous freight hauled in vehicles weighing less than 10,001 lbs.
  • $750,000 for non-hazardous freight hauled in vehicles weighing more than 10,001 lbs.
  • $1,000,000 for flammable liquids moved by private and contracted carriers.
  • $5,000,000 for other hazardous materials used by private and contracted carriers.

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cryptocurrency scam

How Cryptocurrency Scams Work

Legal AssistantAdministrative Law, Business Law, Consumer Law, Regulatory Law, Resources

The findings of a 2022 crime report compiled by Chainalysis indicate that investors lost more than $14 billion worth of cryptocurrency in 2021. That’s almost double the amount that scammers stole in the year before.

No one ever believes they can fall for a scam—until they do. Fraudsters often aim to gain victims’ personal information by working various angles ranging from old-fashioned scamming techniques to employing new-age technology to swindle unsuspecting investors of their hard-earned assets.

What is a cryptocurrency scam, and what are some of the red flags you need to keep an eye out for? Here’s everything you need to know.

How Cryptocurrency Scams Work

A cryptocurrency scam can take many forms. Regardless of which route a scammer decides to take, most of them typically involve tricking you into parting with sensitive personal information related to your digital wallet. They then use this information to gain unauthorized access to your wallet and empty the cash, cryptocurrency, and crypto assets you’ve stored in it.

Crypto scams are a favorite for cybercriminals for several reasons. For starters, there’s the anonymity factor. Once they transfer your crypto assets, it is near-impossible to trace them to an individual.

There’s also the fact that crypto transactions cannot be reversed. The only way to get them back would be to ask the recipient for a refund, which, once again, would be impossible because you don’t know the scammer personally and the not-so-small issue of anonymity.

Finally, the lack of legal protection makes the crypto world a haven for criminal elements. If you get scammed, the chances of recovering your money are slim to none. You could pursue legal action against the exchange and digital wallet provider for a lapse in their security protocol.

This, however, is easier said than done since the burden of proof would rest on you proving that the theft of your crypto was the direct result of the provider in question.

Top 5 Crypto Scams to Keep an Eye Out For

Below is an overview of some of the most common scams plaguing the online world of cryptocurrency. If you look closely, you’ll realize that most of them are basically old-school scams with a crypto twist.

1. Fake E-Wallet

The internet is rife with hundreds of fake crypto wallet apps, which have led to the theft of assets worth millions of dollars. Hackers have painstakingly created numerous fake e-wallets designed to be identical replicas of the real ones, such as Trust Wallet, Bitcoin, imToken, MetaMast, and so forth.

Scammers employ a host of techniques to target unsuspecting victims, including:

  • Sending out emails and text messages containing malicious links that auto-download the fakes apps the moment the recipient clicks on them
  • Creating fake digital wallet websites whose layout and design is identical to the real ones and rank very high in Google search results
  • Posting fake tech support messages on various crypto discussion forums and social media pages with links to their fake websites

2. Cash App Scams

These are a remake of the classic giveaway scams. Here, the scammer impersonates a celebrity or a major brand to promote a lucrative giveaway that potential victims would find hard to resist.

The swindler promises to double winners’ prizes if they deposit Bitcoin, Ethereum, or other crypto assets into a specific wallet address provided. The moment they do, they lose their cryptocurrency forever.

3. ICO Scam

A scammer claiming to be the “founder” of a hot new cryptocurrency launches an initial coin offering (ICO). An ICO is the crypto version of an initial public offering (IPO). Once the ICO goes live, they sell millions’ worth of their new currency, only to then disappear with the cash. As soon as they do, the coin’s value crashes to $0, leaving investors penniless.

4. DeFi Rug Pulls

In the crypto world, the term “rug pull” refers to a scam in which the founders of a cryptocurrency launch a project, collect investor funds, and then abandon it shortly after, making away with a ton of money in investor funds. DeFi is short for “decentralized finance,” and DeFi rug pulls target the decentralized world of cryptocurrencies.

5. Crypto Phishing

In the context of the crypto world, phishing scams target user information held in digital wallets. More specifically, scammers are interested in investors’ crypto wallet private keys. Once they get ahold of them, they use these keys to steal the funds, cryptocurrency, and crypto assets held in victims’ wallets.

Like traditional phishing scams, the genesis of crypto phishing is often an email or text message containing a malicious link to a fake website designed as an identical replica of the original. The website then prompts the user to enter their login credentials which consist of their private key.

The scammer captures this information from the backend of the fake website, uses it to access the victim’s wallet on the real one, and then proceeds to steal their crypto assets.

Are Cryptocurrency Scams Illegal?

The answer to this question isn’t as straightforward as you might think. A crypto scam may not be illegal in itself since the sector remains largely unregulated, but it does cross the threshold when the scam in question breaks certain laws.

Case in point: Bitconnect.

The company’s director and promoter promised users that they would cash in on huge profits if they “invested” their Bitcoin for a specific period. An automated bot would do the trading for them.

The DOJ established that it was all an elaborate scam and that the company used money from the newer investors to pay the older ones in a classic Ponzi scheme. In September 2021, the director and promoter were charged criminally in a California federal court.

How to Avoid Cryptocurrency Scams

While there’s no single formula to avoid getting scammed, the best way to avoid becoming the next victim is to stay up-to-date on the latest crypto red flags.

Always keep your private key and any other sensitive information private, and double-check the website domain name before entering your digital wallet login credentials.

Finally, before investing in anything, ensure you do due diligence beforehand to avoid getting duped.

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Bitcoin and Etherium

Crypto Law – The Challenging New Legal Frontier

Legal AssistantAdministrative Law, Business Law, Regulatory Law

Crypto tokens are considered tradable assets. A single token can act as a unit that denominates a particular cryptocurrency. It can also represent other valuable items.

With that in mind, the question then becomes whether these crypto-assets fall in the realm of securities. If so, would they be subject to the same laws and regulations that govern securities? If not, which government agency might be responsible for their oversight, and which laws and regulations apply to them?

This article explores the challenging new legal frontier that is crypto law.

What Is Blockchain?

Blockchain is a crypto term that refers to a distributed or decentralized database shared between different nodes in a computer network and stores information in digital format.

Blockchains are best known for the critical role they play in cryptosystems such as Ethereum and Bitcoin when it comes to maintaining a decentralized and secure log of every transaction that occurs. It guarantees the security and fidelity of recorded data, generating trust among users without relying on any third-party entity.

While a blockchain is essentially a database, data is structured differently from what you would find in and expect from a typical database. It collects information from different nodes and consolidates it together in clusters referred to as blocks.

Each block holds a set of information and has a specific storage capacity. Once it reaches full capacity, the block is closed, and a link to the previously filled block is generated. Any newly-formed information is added to a new block which will then be linked to the chain once it fills up. You end up with a chain of blocks of data, otherwise known as the blockchain.

The structure of a conventional database consists of tables that store data. On the other hand, the structure of a blockchain consists of blocks that store data which are then strung together. Each block has a unique timestamp indicating when it was added to the chain and a unique identifier known as a cryptographic “hash.” The result of this unique setup is a detailed timeline of information that cannot be reversed or modified.

The function of the hash isn’t just to protect the information contained within the block by preventing anyone without the required code from accessing this information; it also protects the block’s position on the chain by identifying its predecessor.

The hash consists of a set of numeric and alphabetical characters that can be up to 64 digits long. As soon as new information is added to the blockchain, it is encrypted with a hash, rendering it permanent and unchangeable.

Even if someone hacked into one of the computers on the network and tried to tamper with the data for their personal gain, they would still be unable to modify the information held by the other nodes. The modified record would easily be identified and rectified since it won’t match the identifiers contained by the majority.

How Blockchain Works

To understand how blockchain works, you first need to understand why it is created the way it is, i.e., linked blocks of information that cannot be modified. The answer to this is simple.

Blockchain is designed to allow digital information to be logged, stored, and distributed but not modified. It is the foundation of immutable and publicly-accessible ledgers with transaction records that cannot be deleted, destroyed, or altered. For this reason, blockchains are also referred to as Distributed Ledger Technology (DLT).

Although this technology garnered widespread use in 2009 with the launch of Bitcoin, the blockchain concept was first proposed in 1991 in a research project. Today, DLT is used in several applications, including smart contracts, online voting, real estate and property records, licenses and copyrights, insurance policies, medical records, supply chain tracking,  Non-Fungible Tokens (NFTs), and several different cryptocurrencies.

Below is a step-by-step breakdown of how blockchain works.

  1. A new transaction is entered.
  2. The transaction gets transmitted to a global, peer-to-peer network of distributed computers scattered across the world.
  3. This network of distributed computers then confirms the validity of the transaction by solving a series of equations.
  4. Once the transactions’ legitimacy is confirmed, they are consolidated into blocks of information.
  5. These blocks are then linked together to create a long history of transactional information that cannot be deleted or modified.
  6. The transaction is deemed complete at this point.

Keep in mind that a blockchain can be public or “permissionless,” meaning it is open for anyone to participate or view. On the other hand, it can be “permissioned,” meaning that participation and viewership can be limited to a specific group of participants or a single administrator.

What Is a Blockchain in Crypto?

So far, we’ve established that blockchain is a distributed ledger technology. At the very basic, it is a database system that records a chain of transactions clustered into blocks with a unique timestamp and identifier that anyone can view.

Blockchain is the underlying technological framework upon which almost all cryptocurrencies run on, including Bitcoin and Ethereum. They are secured by networks of blockchain, meaning that there’s a massive amount of computing power verifying the accuracy of all the transactions that take place at any given time.

Blockchain is fundamental to all the transactions on the blockchain. It allows payments to be made securely between different users who don’t know each other without having to rely on a third-party intermediary such as a bank to verify the transactions.

The cryptographic nature of blockchain networks makes them more secure than your standard credit card transaction. For instance, when making a cryptocurrency payment using Bitcoin, you’re not required to part with any sensitive information, which completely eliminates any risk of your financial details getting compromised or getting your identity stolen by hackers.

Blockchain Law

The World Economic Forum (WEF) predicts that by 2027, 10 percent of the world’s gross domestic product (GDP) will be stored on DLT. Blockchain is a complete game-changer as far as how financial transactions are conducted, and policymakers have had to amend various regulatory and legal frameworks to adopt blockchain transactions.

Federal Action

Federal agencies have been in the process of evaluating DLTs like blockchain in a bid to improve efficiency, transparency, and trust in the way government information is shared. The Emerging Citizen Technology under the US Government Services Administration launched the US Federal Blockchain program. It was targeted at US businesses and federal agencies interested in the use of DLT within the government.

State Action

In 2015, Vermont became the first state in the country to address the use and implementation of blockchain. The state executive directed the Secretary of State, the Department of Financial Regulation, and the attorney general to explore the risks and opportunities associated with the creation of a validity presumption for records and electronic information that run on blockchain technology and report their findings to the General Assembly.

A year later, the General Assembly came up with the evidentiary standards that would be used to establish the validity of records using DLT with Vermont’s rules of evidence.

In 2017, Nevada, Illinois, Delaware, and Arizona, followed suit to enact or adopt blockchain legislation.

Nevada

Nevada passed a law that effectively-recognized blockchain as a form of electronic record keeping, in line with the Uniform Electronic Transactions Act. The new law made it illegal for local governments to impose restrictions or taxes on businesses, individuals, and institutions using blockchain technology.

Illinois

In Illinois, the General Assembly endorsed a joint resolution following the creation of the Illinois Blockchain Initiative (IBI). IBI is an association of various state and county agencies made up of departments of Innovation and Technology, Financial and Professional Regulation, Insurance, Commerce and Economic Opportunity, and the Recorder of Deeds—Cooks County.

The Illinois Legislative Blockchain and Distributed Ledger Task Force was born out of this resolution and was charged with studying how and whether the municipal, county, and state governments could potentially adopt a blockchain-based system to enhance recordkeeping and service delivery in general.

Delaware

In Delaware, a new law was enacted making it mandatory for state-formed corporations to adopt the use of blockchain technology in the creation, management, and maintenance of corporate records—stock ledger included.

Arizona

Arizona enacted two blockchain statutes. The first bill set out detailed guidelines for electronic signatures done using blockchain technology. The second bill prohibited state agencies and businesses from requiring a person to be subject to or use electronic firearms tracking technology such as DLTs and blockchain.

Other States

Several other states, including Iowa, New Jersey, New Mexico, New York, South Carolina, California, and Wisconsin, have since enacted blockchain legislation to allow for the adoption of DLT in various public and private sector applications.

New Crypto Laws

Scrabble tiles

By the end of 2021, 33 states and Puerto Rico all had pending cryptocurrency legislation. A total of 17 states adopted resolutions or enacted laws governing the use of crypto in the respective states. Below is a list of some of the notable ones.

  • Arizona established a blockchain and crypto study committee.
  • Arkansas amended the Uniform Money Services Act to include cryptocurrency and other virtual currencies and clarified how virtual currencies would be regulated under the Uniform Commercial Code.
  • Hawaii passed a resolution to request the Department of Commerce and Consumer Affairs to review its previous ruling on asset reserve requirements for crypto companies and other virtual currency businesses to transact in the state. It also aligned its asset reserve requirements for these firms with those of other states in the country.
  • Indiana enacted the revised Unclaimed Property Act from the previous legislation to include virtual currency.
  • Louisiana passed a resolution that commended Bitcoin for successfully becoming the first-ever decentralized trillion-dollar asset and encouraged local and state governments to come up with ways that could help them leverage the increasing use of the novel technology.
  • The North Dakota executive called on the legislative management to consider conducting a feasibility and desirability study of the regulation of special-purpose depository institutions and other state entities conducting business activities involving virtual currency.

How to Pick the Best Cryptocurrency Law Firm

The increasing use of digital assets, including cryptocurrency, has brought with it a complex array of legal issues related to:

  • Compliance issues including reporting, custody, and valuation;
  • Regulatory status including the criteria required to register as money services businesses, securities exchanges, investment firms, investment advisors, commodity trading advisors, commodity pool advisors, and broker-dealers;
  • Securities transactions, including mergers & acquisitions (M&A) transactions and initial coin offerings;
  • Anti-money laundering;
  • Launching exchange-traded funds and derivatives;
  • Litigation.

Not all crypto law firms are created equal. You need to pick a team of lawyers who understand blockchain technology to get knowledgeable legal counsel to help you navigate this rapidly evolving sector.

Experienced crypto attorneys have an in-depth understanding of blockchain networks and the underlying technologies they run on, as well as crypto-related developments in distributed computing networks. A competent blockchain lawyer would be able to bridge emerging financial technologies with the existing regulatory legislation to help you find a solution.

Additionally, if you’ve fallen victim to the fraudulent actions of cybercriminals and have lost cryptocurrency and other virtual assets, the first thing you need to do is file a complaint with the following agencies:

Next, consider filing a cryptocurrency lawsuit if you establish that the actions (or lack thereof) of the crypto exchange or digital wallet were responsible for the theft of your crypto assets.

Litigation, in this case, could take the form of an individual civil suit or a class action depending on the specific circumstances surrounding your claim and the number of affected parties. It’s always a good idea to consult a cryptocurrency lawyer to determine which path is right for you.

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A gold Bitcoin

A Legal Overview: What Is Cryptocurrency?

Legal AssistantAdministrative Law, Business Law, Regulatory Law

With the launch of Bitcoin in 2009, cryptocurrency crossed over from being nothing more than an academic idea to becoming a (virtual) reality. Since then, there has been an explosion in the number of different cryptocurrencies on the market and, with it, an ever-growing need for certainty over their legal implications.

Central banks, tax agencies, and regulatory authorities in the country and across the world are all working to decipher the meaning and nature of virtual currencies. In the meantime, investors are cashing in on huge profits from investing in these digital assets and assuming a lot of legal risks in the process.

Is cryptocurrency legal, and how is it protected? Here’s everything you need to know.

What Is Cryptocurrency?

Cryptocurrency or “crypto,” for short, refers to any form of currency that exists in digital format. It uses cryptography to secure and verify transactions and does not rely on a central regulating or issuing authority. Instead, it runs on a decentralized system to issue new units of currency and record transactions. Bitcoin, Litecoin, and Ethereum are among some of the more popular cryptocurrencies.

How Is Cryptocurrency Protected?

To understand how cryptocurrency is protected, you first need to understand how the entire system works. Crypto runs on a distributed, decentralized public ledger referred to as a blockchain.

You can think of this ledger as a database distributed between several nodes in a computer network that stores transaction information in a digital format. Unlike a conventional database made up of tables that hold data, a blockchain consolidates data into blocks, and each block has a specific capacity of information it can hold.

Once this capacity is reached, the block is closed and assigned a unique timestamp and unique identifier known as a cryptographic hash. A link to the previously filled-up block is generated, and the newly-formed block is attached to it, forming a chain of information-carrying blocks, hence the term “blockchain.”

The hash has two main functions:

  1. To protect the information held in a block by preventing anyone without the required code from accessing this information; and
  2. To protect the block’s position on the chain by identifying the block that came before it.

The cryptographic hash comprises a series of alphabetical and numerical characters that could run up to 64 digits long. Any new information added to the blockchain is encrypted with a hash, making it permanent and unchangeable.

If someone attempted to tamper with a block held by one of the nodes on the network, it would be easy to identify and rectify the block in question since it wouldn’t match the identifiers embedded in the majority.

Security Keys

Before you can transact crypto on the blockchain, you need two keys: a public key and a private key.

A private key is essentially a digital signature that’s only available to the crypto asset owner. You would need it to authorize any transaction you do.

On the other hand, a public key is used to validate the private key when receiving transactions. Crypto transactions can only be identified by their respective keys and are anonymous.

If an unauthorized third party gets a hold of your private key, they can use it to access your crypto assets and transfer them out of your wallets. Because of the anonymous nature of these transactions, tracing the culprit is near impossible without the help of law enforcement machinery.

How Many Cryptocurrencies Are There?

At the time of this publication, there were more than 18,000 cryptocurrencies listed on CoinMarketCap, with Bitcoin, Ethereum, Tether, BNB, and USD Coin taking the top five spots on the list. Eighteen thousand different types of coins is a lot, if you think about it – which begs the question: Why are they so many to begin with?

The main reason for this growing number of cryptos has to do with the fact that there’s virtually no entry barrier. This means that anyone who wants to create a crypto coin can do it—even you. You don’t need any technical expertise to do it either. You can hire an expert off a freelancing site like Fiverr and have them do it for you for as little as 20 bucks. It is that easy.

This wasn’t always the case, especially in the earlier days when Bitcoin was the only cryptocurrency around. That is until developers began to create altcoins.

Bitcoin vs Altcoin – What’s the Difference?

To understand the difference between the two, we’ll first start by defining what each term means.

What Is Bitcoin?

When Bitcoin was first launched in 2009, it became the world’s first cryptocurrency. Its founder, Satoshi Nakamoto, who’s remained anonymous to date, created it to be a decentralized, distributed, digital currency whose operation did not rely on banks or any other financial institutions.

Since then, several newer cryptocurrencies have emerged, many of which are technologically more advanced and optimized to make transactions faster and more efficient. Today, the majority of crypto users use it primarily as a store of value rather than a unit of exchange.

Since it is more well-known compared to the other cryptocurrencies on the market, it enjoys a fast-mover advantage, which partly explains the wide value margin it enjoys.

You might ask: How many bitcoins are there? The current circulating supply of the cryptocurrency is approximately 19 million out of the maximum available supply of 21 million.

How Does Bitcoin Work?

Bitcoin runs on blockchain technology. Here’s a rundown of how it works:

1. Wallet Creation

If you’re a new user, you need to install a Bitcoin wallet on your mobile phone or computer. The application will generate your Bitcoin address, although you can always create more as needed.

If you need to send or receive payment in Bitcoin, all you need to do is share your Bitcoin address with them and vice versa, just like you would with a regular email address. The only difference is your Bitcoin address will only be used once.

2. Blockchain

As stated before, blockchain refers to a shared public ledger. The Bitcoin network runs on this system and logs all confirmed transactions. Every time a new transaction is validated, it is added to the chain and is how Bitcoin wallets can compute the user’s available balance.

That way, any new transaction can be verified to confirm its integrity and validate that the sender owns the Bitcoins. The chronological order in which data on the blockchain is stored alongside its integrity is enforced using special encryption technology known as cryptography.

3. Transactions

A transaction in the crypto world is defined as a transfer of value between different Bitcoin wallets, which is then added to the blockchain. Every transaction is signed by a “seed” or private key, which functions as a form of mathematical proof that its origin is the owner’s wallet. This signature also bars anyone from altering the transaction once it has been completed. The transaction is broadcast to the Bitcoin network, and confirmation typically takes 10-20 minutes via a process referred to as mining.

4. Processing

Mining, which is essentially a distributed consensus system, is the method used to validate pending transactions on the network before they can be added to the blockchain. It enforces the chronology of the chain, protects the network’s neutrality, and allows different nodes on the network to “agree” on the system’s state.

For a transaction to be confirmed, it needs to be packed into a block embedded with very specific cryptographic protocols, which prevent blocks from being altered in any way since doing so would interfere with the integrity of all the subsequent blocks.

What Are Altcoins?

altcoins

“Altcoin,” which is short for “alternative coin,” is the general term used to denote any other cryptocurrency apart from Bitcoin. Early altcoins were developed simply as an improvement on the performance of Bitcoin or for some other function entirely.

Ethereum is by far the most popular altcoin in the crypto ecosystem. Cumulatively, altcoins have a market share of approximately 40%, excluding Ethereum, which has nearly 25%. Bitcoin occupies the rest of it.

Proof of Stake vs Proof of Work

One of the defining characteristics of cryptocurrencies is that they are decentralized and distributed. That said, the fact that they didn’t rely on a central authority like a bank or financial institution to verify transactions presented a major challenge for crypto.

Bitcoin, Bitcoin Cash, Ethereum, and Litecoin overcome this hurdle by adopting a mechanism known as proof of work. On the other hand, Avalanche, Cardano, Solana, and a wide range of other platforms have taken a different approach by using proof of stake.

While the two mechanisms are similar in that they are both consensus mechanisms for processing transactions and validating new block entries in a blockchain, the difference lies in how they achieve this goal. Additionally, proof of stake also consumes significantly less energy than its proof of work counterpart.

How Does Proof of Stake Work?

In proof of work, the network nodes use up large amounts of computational resources to generate new valid blocks, which they then agree to add to the blockchain.

On the other hand, in proof of stake, the network nodes put up collateral or a “stake” in the form of cryptocurrency to back the newly-formed block they want to be added to the chain. Although it’s not based on the “one-person-one-vote” premise, it works a little like voting.

Instead, the network of participants, referred to as “validators,” stake a specific amount of cryptocurrency backing the block they want to be integrated into the chain. The amount restrictions vary depending on the blockchain. Holders of crypto “vote” to approve verified transactions in exchange for newly-minted cryptocurrency over time.

Crypto Security Tokens vs. Utility Tokens – What’s the Difference?

While coins and tokens all fall under the same generic umbrella of “cryptocurrency,” they refer to two completely different things. Coins generally denote currency and have a cash equivalent based on demand and supply market forces. On the other hand, tokens denote some type of non-cash-based asset, such as a stake in the ownership of an item with special rights within a blockchain.

Tokens themselves can have value but are not a means of transferring that value. They exist for things that might be more complicated than simple monetary transactions.

For instance, crypto security tokens are tied to securities offerings. Companies issue them as a way to invest in their long-term growth and are regulated like the conventional securities you find in traditional markets.

A utility token is usually issued at an initial coin offering (ICO) and is designed to give preferential treatment (a lot like a “golden ticket”) to token holders. Preferential treatment might be a discount to items in the company’s product line, such as software packages or SaaS platforms.

What Are Meme Coins?

A meme coin is exactly what it sounds like—a cryptocurrency whose creation was inspired by a meme or an internet joke. Dogecoin is a well-known cryptocurrency created from a photo of a Shiba Inu that went viral. What initially started as a joke went mainstream and became increasingly popular and rose in value, and is currently worth about $0.12 per coin.

Cryptocurrency Regulation

On March 9, 2022, President Joe Biden signed an executive order that directs federal government agencies, key among which are the Treasury and Commerce departments, to coordinate efforts to regulate digital assets, including cryptocurrencies. The idea is to come up with a comprehensive framework that addresses the emerging opportunities and risks posed by virtual assets.

A 2020 IMF cryptocurrency regulation report had previously echoed these sentiments raising questions on whether the existing regulatory framework and restrictions could adapt to the changing cryptocurrency conditions. The report stated that effective regulation of these digital assets could minimize the risks that come with external socio-economic pressures that often plague financial markets.

Until then, the question remains: How will cryptocurrency impact the future of law? The reality is the cryptocurrency is largely unregulated, with many federal agencies, including the Internal Revenue Service (IRS), the Financial Crimes Enforcement Network (FinCen), the Securities and Exchange Commission (SEC), and the Commodities and Futures Trading Commission (CFTC) all claiming jurisdiction over digital assets. The outcome of the newly-instituted executive order will determine the future of cryptocurrency vis-à-vis regulated cryptocurrency brokers and investors alike.

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What Happens to Cryptocurrency Assets in a Divorce?

Legal AssistantDivorce Law, Family Law, Resources

If you know a thing or two about divorce, you know that the division of assets and liabilities is integral to the entire process. You may not understand how complicated things can get when you add cryptocurrency into the mix.

With the popularity and value of crypto assets growing with each passing day, they are becoming increasingly common in marital assets. These also need to be valued and divided between the divorcing parties. Unfortunately, it is easier said than done.

With no concrete legal framework on how crypto is to be treated in a divorce and little knowledge on how to track it, value it, and divide, savvy investors are using it as a means for hiding money in a divorce.

What happens to cryptocurrency assets in a divorce? Here’s everything you need to know.

Division of Property in a Divorce

No one ever gets married believing that at some point down the line, they’d be sitting in an arbitration room with a court-appointed mediator, discussing the division of their marital assets. The process involves making some tough calls, particularly regarding the division of assets, debts, and properties. When dividing assets in divorce, three factors come into play:

  1. The state you live in
  2. The kind of property you own
  3. The type of divorce you seek

1. The State You Live In

Courts treat marital property in one of two ways depending on the state you reside in. Debts and assets are divided based on the same principles.

  • Equitable distribution states: In some states, all property, assets, earnings, and liabilities acquired during the marriage are divided equitably between both parties. “Equitably” is not to be confused with “fairly.”
  • Community property states: In other states, all marital property, assets, and debts are classified as either community property or separate property. Generally, each spouse gets to keep their separate property, whereas community property is divided equally between both parties.

2. The Kind of Property You Own

Who gets the house? The answer to this age-old question depends on whether you reside in a community property state or a separate property state. As mentioned before, community property refers to assets acquired during the marriage. On the other hand, separate property refers to earnings, assets, property, gifts, and anything else that each spouse acquired before the marriage.

If you live in a community property state and perhaps live in a house purchased using a combination of separate and community funds is generally considered community property.

3. The Type of Divorce You Seek

Most people hardly ever give a second thought to the kind of divorce they want to have. If you’re willing to work together with your estranged spouse, an uncontested divorce would be the least expensive route to take. It generally involved both parties agreeing to all the terms of the divorce, including property division, without going through a formal trial.

A contested divorce is the stereotypical scenario that comes to mind when you think of divorce. It happens in cases where there’s a lot of disagreement where matters involving property division, spousal support, and child custody issues are concerned.

Somewhere in the middle of the spectrum are divorces that involve mediation, arbitration, and other collaborative alternatives that allow each spouse to get independent legal representation without having to go through the costly process of a full-blown trial.

Divorce Disclosure of Assets

In a divorce, each spouse is legally required to disclose all their property, assets, earnings, and debt in the financial disclosure phase of the divorce proceedings. It is an important part of the process since it is what would be used in the division of assets and the determination of child and spousal support.

More often than not, most spouses will usually comply with these requirements. Unfortunately, some individuals aren’t as forthcoming, particularly where cryptocurrency tokens, NFTs, and other digital assets are involved. It is not unusual to hear cases of a husband selling crypto assets before divorce and hiding the proceeds from the financial disclosure.

When one of the parties in the divorce fails to disclose the full value of the assets they hold, they are in violation of fiduciary duty and will essentially have lied under oath. The penalty for lying under oath varies by state and by case and may include monetary fines, prison time, and probation.

On the other hand, the penalty for hiding assets in divorce may include monetary or perjury charges. In most cases, if you’re found to be hiding assets in a divorce, you’ll likely end up losing more than half the value of the hidden asset as well as being responsible for your spouse’s legal fees and expenses incurred since you’ll be in breach of fiduciary duty.

Cryptocurrency and Divorce

man women pulling bitcoin

The Bitcoin nightmare for divorce lawyers isn’t going anywhere any time soon. Crypto assets are, by design, difficult to trace, which is what makes them so problematic. Cryptocurrency is essentially a specific type of software or code that determines the way in which each currency unit is created and regulated.

All crypto transactions are recorded on a public ledger known as a blockchain and can be tracked using a special address known as a “public key.” The crypto asset owner has a unique password referred to as a “private key,” which allows them to buy, sell, and trade crypto units on the blockchain. The private key is stored in the owner’s virtual “wallet.”

Here’s why crypto is a major pain point for divorce attorneys.

Unless you know an individual’s private key, it is impossible to trace cryptocurrency transactions back to the owner. For a lawyer to confirm whether or not someone holds crypto assets, the private key would need to be disclosed.

Once the private key is obtained, all transactions on the blockchain that are related to that particular key can be traced back to the owner. The crypto assets will then be valued and divided between both parties based on the marital property laws in your state.

While it is difficult to get the crypto owner to disclose whether or not they’re holding crypto assets, it is possible to do it through a subpoena to compel them to share the information.

Enforcing Divorce Settlement

To enforce a marital settlement agreement, you’ll need to file a motion with the court, showing that your ex-spouse has failed to comply with the settlement terms. If that’s the case, you can petition the court to help you enforce your agreement.

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What Is an Enhanced Driver’s License?

Legal AssistantAdministrative Law, International Law, Regulatory Law, Resources

If you live in Washington, Vermont, New York, Minnesota, or Michigan and have plans to visit family members or go on vacation, you might have to rethink your mode of travel. Most of these states have imposed deadlines requiring all state citizens to obtain enhanced driver’s licenses or real IDs if they plan to travel by air. What is an enhanced driver’s license, and how is it different from a real ID? Here’s everything you need to know.

What Is an Enhanced Driver’s License?

An enhanced driver’s license (EDL) looks like a standard driver’s license except for the banner that reads “Enhanced” and the picture of the American flag that appears on the bottom-right corner.

A state-issued enhanced driver’s license serves as proof of citizenship and identity for domestic air travel, as well as gaining access to federal buildings and military bases. It also provides travelers with a convenient, low-cost alternative when re-entering the US from Mexico, Canada, or the Caribbean through sea or land ports of entry. Since it is also a driver’s license, an EDL license also functions as a permit to drive.

The Department of Homeland Security has been working closely with states to enhance their identification documents and driver’s licenses to comply with the travel guidelines as defined by the Western Hemisphere Travel Initiative (WHTI).

The WHTI is a joint plan between the Department of Homeland Security and the Department of State to implement one of the primary recommendations of the 9/11 Commission as well as the Intelligence Reform and Terrorism Prevention Act’s (IRTPA’s) statutory mandates.

The IRTPA tasked the DOS and DHS with developing and implementing a plan that requires all travelers – both US and foreign nationals alike, to present a passport or any other acceptable documentation that denotes an individual’s citizenship and identity when entering the country.

Enhanced driver’s licenses contain two main technologies that make it easy for US citizens to cross into the country at a port of entry:

  • A Radio Frequency Identification (RFID) chip that transmits a signal to a secure system. It prompts it to bring up your biometric and biographic information as you approach a border inspection booth.
  • A Machine Readable Zone (MRZ) in the form of a barcode. It can be read electronically to pull up your biometric and biographic information at a border inspection booth if the RFID chip malfunctions.

Enhanced Driver’s License Requirements

To apply for an enhanced driver’s license in Washington, Vermont, New York, Minnesota, or Michigan, you’ll need to provide:

  • Proof of name
  • Proof of identity, social security number (not required for Washington state residents), US citizenship, and state residency
  • Completed application form
  • EDL fee ($35 for Washington residents, $25 for Vermont residents, $30 for New York residents, $15 for Minnesota residents, or $45 for Michigan residents)
  • Photograph (for Michigan residents only)

What Is a Real ID?

In 2005, Congress passed the Real ID Act. This federal law defines the minimum security requirements for license production and issuance and makes it illegal for certain federal agencies to accept identification cards and driver’s licenses from states that don’t meet these standards.

The Act further establishes the situations in which a real ID (and not any other form of identification) would be required. These include:

  • Access to certain federal facilities
  • Access to all nuclear power plants
  • Boarding a federally regulated commercial aircraft

In December 2013, the DHS announced that the enforcement of the Real ID Act would be carried out in phases. This mode of implementation was designed to ensure that the law was enforced fairly and responsibly.

To date, half of all the states have met the minimum standards provided by the Act. The deadline for compliance has been set for May 3, 2023. This means that any adult aged 18 years or older flying to anywhere within the US borders, accessing a federal building, or entering a military base needs a real ID before they can do so.

Real ID Requirements

To apply for a Real ID, here’s a list of the things you need:

  • Proof of identity that displays your date of birth; proof of US citizenship or a government-issued document showing lawful status
  • Name change documents (if applicable) such as a marriage certificate if the name on your identity document is different from your current name
  • Social security number (SSN) as displayed on your social security card, W-2 Form, SSA-1099 Form, Non-SSA-1099 Form, pay stub, or a printed deposit slip displaying your name and SSN
  • Proof of residency by presenting two documents: a bank statement, canceled check, credit card statement, certified college/university or grade/high school transcript, deed/title or lease/rental agreement, etc., bearing your residential address.
  • Written signature on a canceled check, standard driver’s license, credit/debit card from a major provider, or social security card

Enhanced Driver’s License vs Real ID – Which One Should You Get

Now that you know the difference between an EDL and a real ID, the question becomes – which one should you get? The answer to this question all boils down to your current lifestyle. How often do you travel for work or leisure? Are your travels primarily within the US, or are you mainly an international traveler?

A real ID will suffice for individuals who travel a lot within the US. On the other hand, international travelers may require enhanced driver’s licenses. An EDL and real ID can both be used to fly within the US and enter federal facilities.

The difference between the two documents comes in when re-entering the country through a land or sea port-of-entry. Only EDLs allow US citizens to cross into the country from the Mexico and Canadian borders, as well as from some countries in the Caribbean.

It is worth noting that EDLs are not available in every state. Currently, only five states in the country are issuing enhanced driver’s licenses, namely: Washington, Vermont, New York, Minnesota, and Michigan.

Do You Need an Enhanced License to Fly?

From May 3, 2023, US citizens will need an EDL or ID card, a passport or passport card, or any other form of accepted documentation to board domestic flights. Technically speaking, if you already have a valid Global Entry Card, US passport, federally-recognized tribal-issued ID, or a Department of Defense ID, you don’t need an enhanced license to fly.

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Can You Ride in an RV Without a Seatbelt?

Legal AssistantConsumer Law, Criminal Law, Resources

Hitting the open road in your RV with your family is the classic American vacation. Discovering magnificent new locations is what makes the whole trip so exhilarating. Since you’ll likely be traveling on the interstates and highways, it’s important to familiarize yourself with RV seatbelt laws to avoid getting caught up on the wrong side of the law.

Can you ride in an RV without a seatbelt? This article explores the answer to that question and more.

RV Seat Belt Laws by State

Seat belt laws for RVs vary widely by state. Things can get a little dicey if you’re crossing state lines. As a rule of thumb, it’s always easier to abide by the rules in the state with the most stringent regulations. That way, you know you won’t be breaking any laws regardless of which state you travel to.

As far as RV seat belt laws go, you can sit in any location in your vehicle. However, it doesn’t mean that every spot in your RV is safe to ride in. It’s always a good idea to strap up wherever you’re seated as opposed to not being strapped in at all.

Here’s a brief overview of the RV seat belt laws in various states across the country.

  • Alabama: passengers in the back and not required to buckle up.
  • Alaska: all passengers in the RV should wear a seatbelt.
  • Arizona: children aged 15 years and below should wear a seatbelt in the backseats.
  • Arkansas: all passengers in the RV should be buckled up at all times.
  • California: all passengers in RV should wear a seatbelt at all times.
  • Colorado: all passengers in the vehicle should be buckled up at all times.
  • Connecticut: children in the backseat aged 16 years and below should be buckled up at all times.
  • Delaware: every passenger in the RV should wear a seatbelt at all times.
  • Florida: passengers in the backseat aged 18 years and below should wear a seatbelt at all times.
  • Georgia: passengers in the back seats aged 18 years and below are required to wear seat belts at all times.
  • Hawaii: every passenger in the RV should be buckled up at all times.
  • Idaho: every passenger in the RV should wear a seat belt at all times. This rule does not apply for RVs that weigh 8000 pounds and above.
  • Illinois: all passengers aged 15 years and below should be buckled up at all times.
  • Indiana: passengers in the back of the RV can ride without a seatbelt.
  • Iowa: all passengers need to be buckled up at all times.
  • Kansas: children age 14 years and below riding in the back seats need to be buckled up at all times.
  • Kentucky: the law requires all passengers in the RV to be buckled up while the vehicle is in motion.
  • Louisiana: children aged 12 years and below need to have seat belts on while riding in the backseat.
  • Maine: all passengers in the RV are required to buckle up.
  • Maryland: adults riding in the back seats do not need to wear a seatbelt. On the other hand, all children need to be buckled up at all times.
  • Massachusetts: all passengers are required to wear a seatbelt.
  • Michigan: all children riding in the backseat aged 15 years and below have to wear a seatbelt at all times.
  • Minnesota: children aged 10 years and below riding the back seats need to wear seat belts at all times.
  • Mississippi: children aged 10 years and under need to be buckled up at all times when riding in the backseat.
  • Missouri: children aged 15 years and below need to be buckled up at all times when riding in the back seats.
  • Montana: all passengers riding in the RV need to wear seat belts at all times.
  • Nebraska: all passengers aged 18 years and below need to be strapped in at all times.
  • Nevada: all passengers riding in the RV need to wear seat belts at all times if the vehicle is traveling at more than 15 mph.
  • New Hampshire: all passengers in the RV are required to wear a seatbelt unless the RV is a 1968 model or older.
  • New Jersey: children aged 17 years and below are required to wear a seatbelt at all times.
  • New Mexico: all passengers in the RV need to be buckled up at all times.
  • New York: children aged 15 years and below are required to wear seat belts if they’re riding in the backseats.
  • North Carolina: children aged 16 years and below are required to wear seat belts at all times if they’re riding in the backseats.
  • North Dakota: children aged 17 years and below are required to buckle up at all times when riding in the backseats.
  • Ohio: only riders in the front seats are required to buckle up while the RV is in motion.
  • Oklahoma: children aged 12 years and below are required to wear seat belts when riding in the backseats.
  • Oregon: all passengers are required to buckle up while the RV is moving.
  • Pennsylvania: children aged 18 years and below need to be strapped in at all times when riding in the backseats.
  • Rhode Island: all passengers are required to wear a seatbelt at all times.
  • South Carolina: all passengers need to be buckled up at all times.
  • Tennessee: children aged 16 years and below need to be buckled up at all times when riding in the back seats.
  • Texas: children aged 17 years and below are required to wear seat belts at all times when riding in the RV.
  • Utah: everyone in the RV is required to wear a seatbelt
  • Vermont: all passengers need to be strapped in a moving RV.
  • Virginia: children aged 16 years and below need to be buckled up when riding in the backseats.
  • Washington: all passengers in the RV need to have the seatbelt on while the vehicle is in motion.
  • West Virginia: children aged 17 years and below are required to wear seat belts at all times while riding in the backseats.
  • Wisconsin: children aged 15 years and below are required to wear seat belts while riding in the back seats.
  • Wyoming: all passengers have to be buckled up while the RV is in motion.
rv in hills
Image Credit: PXHere

FAQ

Can You Ride in a Towable RV?

In most states across the country, it is illegal for passengers to ride inside any towable RV. It’s important to look up what the state law has to say about it. For instance, Kansas and Alabama allow passengers to ride inside a towable RV.

5th wheel RV laws vary by state. It is illegal in some states and prohibited in others. Be sure to check the laws in the state you’re driving through to avoid getting caught up on the wrong side of the law.

It is legal in some states and illegal in others. In states where riding in RV trailers is legal, additional laws may require all windows of the camper trailer to be made of safety glass before any passenger can ride inside.

Can You Sleep in RV Bed While Driving?

The answer to this depends on the state you’re traveling in. In most states, it is generally legal to sleep in a towable travel trailer if state law does not prohibit you from riding in it. It is generally legal for adults to sleep in an RV bed if state law allows them to ride in the backseat without being buckled up.

Can You Put Child Seats in an RV?

RV child seat laws require children to be buckled in at all times when riding in a moving vehicle, RVs included. Ensure the sitting positions in the RV cabs are appropriate for car seat installations.

Have legal questions? Chat online with an available Laws101 attorney.

judge using gavel

How to Join a Class Action Lawsuit

Legal AssistantConsumer Law, Mass Torts, Personal Injury Law

When hundreds or even thousands of people  all suffer the same harmful effects of the same individual or entity, rather than file several different lawsuits, those people can come together to form a “class.” That way, they can all file a single lawsuit known as a “class action.”

Class action suits arise for several reasons, including defective products such as faulty prescription drugs and vehicle components, stockholder claims such as securities fraud, unfair business practices such as banking and phone services, and even employment-related issues such as wage disputes and discrimination.

How do you join a class action suit? Here’s everything you need to know.

How to Join a Class Action Lawsuit

In most cases, there’s nothing you need to do to join the class action. These types of legal claims are usually opt-out lawsuits. It means that if you’re a class member whose legal interest is represented by the suit, you’ll automatically be included in the claim unless you choose not to participate or “opt-out.”

If a class action suit has been filed, you may receive a letter in the mail indicating that there’s a lawsuit that could affect your legal rights. You won’t have to pay anything since the lawyers handling the case will only receive their fees if they get a favorable outcome.

These would be deducted from the court award or settlement. You only need to take action once the case settles, at which point you’ll need to complete and submit a form online or via mail to get a portion of the settlement.

If the lawsuit is an “opt-in” class action, it means you won’t automatically be included in the claim. The class action notice you receive will contain information on how to join the lawsuit to opt-in.

Can I Sue Without Joining a Class Action Lawsuit?

While pursuing an individual claim against a company is possible, a class action lawsuit gives you better odds of a settlement. There’s strength in numbers, so you stand a better chance of recovering the compensation you otherwise wouldn’t have been able to as an individual. That said, there are some risks of joining a class action lawsuit you need to keep in mind.

For starters, the compensation you’re entitled to receive is restricted to specific economic damages. If a defective product harmed you, the courts would likely award compensation for the cost of treatment and possibly the cost of the item. You won’t be able to recover damages for, say, future medical costs.

Additionally, once you join a class action, you cannot sue the company as an individual – ever. This applies whether or not the class action is successful. If it loses, you’re out of luck.

Top Class Action Suits

Below is a detailed overview of the top class action suits that have been filed in the recent past.

TikTok Lawsuit

If you are a TikTok user in the United States, you might be entitled to a portion of the $92 million settlement to resolve a class action suit over data privacy. Any individual in the country who used the social app before October 1, 2021, can join the nationwide Class.

In the class action suit, plaintiffs accused TikTok of breaching their data privacy rights by collecting users’ personal data without consent or adequate notice. The defendants named in the suit are TikTok Inc. (formerly Musical.ly Inc.), Musical.ly Inc. (now TikTok), ByteDance Inc., and Beijing ByteDance Technology Company Ltd. The companies were accused of violating federal and state privacy laws with regard to the collection of personal information.

While the court did not rule in favor of any of the parties to the suit, the defendants denied any wrongdoing. The parties have since negotiated and agreed on an out-of-court settlement in a bid to save on the time, costs, and uncertainty associated with taking the case all the way to trial.

Any class member who files a valid claim will receive a proportional share of the settlement amount once attorney’s fees and any other related expenses are deducted from the fund. If you used the app to create a video, you might be entitled to compensation. The final class action settlement hearing is slated for May 18, 2022, and the deadline to file a claim is March 1, 2022.

T-Mobile Lawsuit

In August 2021, Stephen J. Vash filed a class action suit against T-Mobile on his behalf as well as that of 100 million of the telecommunication firm’s customers. Vash claimed that T-Mobile betrayed customers’ trust by not properly securing the sensitive personally identifiable information (PII) they provided when they first signed up for the company’s services.

He stated that T-Mobile negligently, recklessly, willfully, and intentionally disregarded plaintiffs’ rights by failing to put in place reasonable measures that ensured customers’ PII was adequately safeguarded.

Some of the personally identifiable and private information provided by customers as part of the telecommunication firm’s sign-up requirements included their full name, birth date, physical address, phone number, and social security number.

Details in the suit state that T-Mobile should have anticipated a potential cyberattack and, as a result, acted negligently by allowing the breach to occur. Plaintiffs also stated that the company did not update, audit, and monitor its cybersecurity patch maintenance and protocols and failed to detect, mitigate, and notify customers of the breach.

Vash further alleged that T-Mobile put customers at risk of suffering significant harm and inconvenience by failing to take measures to prevent the data breach, including fraud. He stated that those affected would now have to channel time and money toward keeping their information safe from cybercriminals.

Plaintiffs are seeking actual, statutory, and punitive damages, as well as injunctive and declaratory relief, as well as restitution and reimbursement for the attorney fees and expenses incurred during the duration of the suit.

Zantac Lawsuit

On April 1, 2020, the Food and Drug Administration (FDA) called for the immediate withdrawal of all over-the-counter and prescription Zantac medications from the market, including generic forms like ranitidine. The federal agency arrived at this decision after the widely popular heartburn medication was linked to a known carcinogenic substance.

Seven months earlier, Sandoz Inc., the drug company that manufactures Ranitidine Hydrochloride Capsules (Zantac) 150 mg and 300 mg, had issued a voluntary recall after they discovered the presence of N-Nitrosodimethylamine (NDMA). The substance is considered a probable human carcinogen.

According to the FDA, medications that contain ranitidine often contain trace amounts of NDMA. Lab tests have since demonstrated that the substance is potently carcinogenic even in low quantities. Since then, several generic Zantac manufacturers have issued recalls, including Zantac suppliers for CVS, Rite Aid, Walmart, and Walgreens. Sanofi, a well-known manufacturer of brand-name Zantac, also issued a recall in October 2019.

Thousands of Zantac lawsuits have since been filed in the federal courts and have now been consolidated into a class action multidistrict litigation (MDL). According to the MDL steering committee, you are eligible to join the suit if you or a loved one has been diagnosed with cancer of the stomach, liver, pancreas, bladder, or esophagus. The initial cases are expected to go to trial toward the end of 2022.

Roundup Lawsuit

man spraying pesticide
Image Credit: Unsplash

In March 2015, the International Agency for Research on Cancer (IARC) released a report indicating that glyphosate, the active ingredient in the popular weed killer Roundup, was shown to cause cancer. Before this 2015 IARC report, studies in both the United States and Sweden that were published from 2001 concluded that glyphosate, as well as other pesticides, were associated with an increased risk of cancer.

Non-Hodgkin’s lymphoma is the most prevalent type of cancer associated with Roundup. It has also been linked to other types of blood cancers such as hairy cell leukemia, chronic lymphocytic leukemia, B-cell lymphoma, and T-cell lymphoma. Lymphoma is a type of cancer that originates in the lymphatic system and forms part of the body’s immune system.

There are 70+ cancers that fall in the category of lymphomas, one of which happens to be Hodgkin’s disease and non-Hodgkin’s lymphoma. The latter is the most common type and occurs when white blood cells, also known as lymphocytes, develop tumors.

The main difference between non-Hodgkin’s lymphoma and Hodgkin’s lymphoma is whether or not the presence of an abnormal cell known as the Reed-Sternberg cell is detected. This cell is only found in patients with Hodgkin’s lymphoma.

In August 2018, DeWayne J. was awarded $289 million in a lawsuit against Monsanto after the jury determined that the company’s popular weed killer Roundup was the cause of his terminal cancer.

In March 2020, Gregory Canzoni filed a lawsuit in an Ohio federal court. Following his exposure to glyphosate in Roundup, Canzoni received a hairy cell leukemia diagnosis in September of the following year.

More than 125,000 ongoing claims by Roundup users allege glyphosate exposure led to their non-Hodgkin’s lymphoma. Bayer, the company that acquired Monsanto in 2018, has since settled 95,000 of these claims for $9.6 billion.

In May 2021, the company provided a $2 billion class action proposal to settle the remaining 30,000 cases where the plaintiffs allege that Roundup was responsible for making them ill. The proposal was rejected by a US District judge, citing that it was “clearly unreasonable.”

A month later, the company came up with a new proposal. That it would:

  • Obtain approval from the Environmental Protection Agency (EPA) to include a link on product labels referencing the 2015 IARC study informing customers on the risks of using the weed killer
  • Compensate plaintiffs up to $200,000 if they were diagnosed with non-Hodgkin’s lymphoma in the future and cater for all medical examination expenses.

Baby Powder Lawsuit

Baby powder lawsuits, also known as talcum powder lawsuits, are claims in which plaintiffs allege that the manufacturers were aware that their products were contaminated by asbestos and did nothing to warn consumers of the inherent risks of using them. Asbestos has been proven to cause ovarian cancer and mesothelioma.

Johnson & Johnson is currently facing close to 38,000 cases resulting from asbestos contamination of their talc products. In the summer of 2021, J&J created LTL Management LLC. as a subsidiary of the main firm. The idea was to separate the company’s assets from its mounting liabilities, which, at the time of this publication, amounted to more than $4 billion in defense, verdicts, and settlement costs.

Shortly after, LTL Management filed for bankruptcy despite receiving a letter from the oversight committee of the US House of Representatives, urging the company to forgo this seemingly evasive tactic. The firm’s bankruptcy proceedings meant that all the existing lawsuits against J&J were effectively paused until the final ruling.

J&J range of products implicated in the talc powder class action suits include:

  • Johnson’s Baby Powder
  • Gold Bond Body Powder
  • Gold Bond Extra Strength Body Powder
  • Gold Bond No Mess Powder Spray
  • Shower to Shower

Other manufacturers named in talc-powder-related lawsuits include Colgate-Palmolive, Imerys Talc North America, Whittaker Clark & Daniels, and Vanderbilt Minerals. At least four different class action suits have been filed to date, with jury verdicts awarding plaintiffs billions of dollars in class action settlements.

In your typical asbestos lawsuit, plaintiffs allege that talcum products that have been contaminated with asbestos are the root cause of their mesothelioma. In a recent verdict, a jury ordered J&J and Imerys Talc to pay $117 million to Stephen Lanzo III and his wife in punitive and compensatory damages. In his suit, Lanzo stated that J&J was responsible for his mesothelioma diagnosis.

OxyContin Lawsuit

To date, more than 100,000 personal injury claims have been filed against Purdue Pharma for injuries related to addiction, overdose deaths, and infants born with neonatal abstinence syndrome caused by opioid exposure in the womb.

In December 2021, a federal judge overturned a $4.5 billion settlement ruling between local, state, and tribal governments stating that it shielded the Sackler family, who owned Purdue Pharma, from all civil liability in opioid drug deaths and related tragedies. This settlement came in the wake of a complex restructuring plan that a bankruptcy judge had approved in September of the same year.

In the original settlement, individuals who had filed personal injury claims against the OxyContin maker would receive up to $48,000 each under the bankruptcy plan. According to court documents, the payouts would be sourced from a special trust worth an estimated $750 million.

A New York US District judge later pulled the plug on the initial deal since it contained a clause indicating that members of the Sacker family, who incidentally did not file for individual bankruptcy, would only contribute to the settlement fund if they were exempt from all future civil litigation. The case is ongoing.

Have legal questions? Chat online with an available Laws101 attorney.