As Trump reduces federal enforcement, judges will strengthen token freezes

Civil fraud judges are taking more aggressive steps to freeze and recover stolen codes, according to a new report. As federal enforcement decreases, retailers are looking for new sources of protection.

Still, this trend is not sufficient to solve the problem. These judges are struggling to deal with today’s crime waves and are not familiar with Web3 technology. The con artists can convince them to stop their efforts.

Civil judges fight crypto fraud

While President Trump has had a major impact on the Web3 market, the war with federal government’s code enforcement may prove to be the most consequential.

One recent example highlights reductions. Today, Trump has withdrawn his candidate for CFTC Chairman.

In this environment, ordinary judges must deal with more liability than previously under Uncle Sam’s range. That is, new reports show judges who are the primary side of civil fraud cases are being asked to freeze stolen codes more than ever before.

“People are desperately trying to find ways to recover (stolen) assets, and the Department of Justice doesn’t have the resources to chase these cases. Lawyers can see the code transfer, but getting it in and getting it back is a whole other thing.”

Many of these cases were scams only by individuals trying to recover lost tokens without institutional officials. Private companies have been reluctant to support community detectives, and the DOJ has eased investigations into money laundering platforms.

The judges may be the best hopes of these investors to freeze or recover the code.

Insufficient fixes

Still, this solution is totally inappropriate to tackle such issues for a variety of reasons. Simply put, it’s a big problem, and civil fraud judges don’t have the training or ability to resolve it. One recent example highlights the dilemma very well.

Hayden Davis, the infamous promoter of Libra Meme Coin, recently convinced a federal judge to lift up the freezing of his code wallet.

His lawyers argued that “the intangible, fast-moving, opaque nature of cryptocurrency” sparked new dangers.

The judge acquiesced to the request, and Davis allegedly took part in another crypto fraud within a week. These people were trained to understand law, not blockchain technology. Plus, they have many liabilities besides crypto crime. If we ask them to put the burden of enforcement, it won’t always work.

That means retailers are under attack from constant hacking and fraud.

Ensuring cryptocurrency recovery requires more than the coordinated effort of a sympathetic judge. You need to find and implement more effective methods.

When Trump reduces federal enforcement, post-judges increase token freezes.