COBALT successfully defended a virtual currency services provider in a pre-trial investigation for possible misappropriation of high value assets

2022 - 01 - 14

COBALT successfully represented a client providing services related to virtual currencies before the Financial Crimes Investigation Service (the FCIS) and the Vilnius Regional Prosecutor’s Office in a pre-trial investigation into possible misappropriation of high value assets – the pre-trial investigation was terminated based on a complaint filed by COBALT Partner, attorney-at-law Mindaugas Bliuvas, concluding that no criminal offences had been committed.

The pre-trial investigation was initiated on the grounds that a company providing services related to virtual currencies, having suspended the payment of funds in accordance with the legislation on the prevention of money laundering (AML), did not transfer them to the State Tax Inspectorate for the purpose of initiating the process of declaring the property as a stateless property and thus allegedly appropriated assets of high value, including bitcoins (BTC), the value of which on the date of the termination of the pre-trial investigation was nearly EUR 2 000 000.

COBALT team succeeded in arguing that the client did not misappropriate the assets, as the State Tax Inspectorate was not obliged to receive the virtual assets (bitcoins), but rather the almost EUR 250 000.

The legal services resolved a long-standing dispute with public authorities and avoided further damage to the company due to a long-standing seizure of property.

The client’s interests in the criminal proceedings were represented and procedural documents were drafted by COBALT Partner Mindaugas Bliuvas and COBALT Associate Arnas Trukšnys.

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