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Showing posts from May, 2018

Cryptocurrency Exchange Hit With Unclaimed Property Class Action

In May of 2010, a Jacksonville software developer named Laszlo Hanyecz made the first purchase of real world goods (2 pizzas) using the cryptocurrency Bitcoin.  Since that time, cryptocurrencies – digital currencies that rely upon computerized cryptography to control monetary flow (i.e., the amount of funds available), approve and record transactions – have become more publicly accepted and risen tremendously in value .   Today, Bitcoin - one of the most widely known cryptocurrencies - can be used to purchase a wide variety of goods at a number of retailers. As cryptocurrencies such as Bitcoin become more widely accepted, they will also come under the increasing scrutiny from financial regulators, law enforcement agencies, and consumer protection watchdogs.  Indeed, it appears that this is already happening.  Already, the I RS has issued guidance as to when cryptocurrencies will be treated as property for U.S. tax purposes.  On the unclaimed property law front, the 2 016 Uniform U

California Taps the Brakes on Potential Amnesty Program

A few weeks ago, the unclaimed property industry was abuzz with the news of California legislation that would implement the Golden State’s first Voluntary Disclosure Agreement (VDA) program since 20o2.  VDA arrangements are amnesty programs pursuant to which holders of unclaimed property can self-report and remit overdue property to the state.  In most such programs, in exchange for coming forward with the overdue funds, the holder generally receives a waiver of the late-reporting penalties and/or interest that would otherwise be assessed under the act.  While VDA programs have long been in place in unclaimed property significant states like Delaware and New York , California has been an extreme outlier:  not only does the state have no amnesty program, but it is among the most aggressive in assessing interest on unclaimed property.  Little wonder then that news of a potential California VDA program was welcome news. Alas, it appears that the program is not in the im