New and emerging technology is always exciting and interesting to learn. Traverse Legal's attorneys have always prided themselves on understanding the underlying technology for emerging industries such as blockchain and crypto. As importantly, the rapid rise of cryptocurrencies and blockchain technology has created an entirely new category of legal work. Crypto law is not just about regulation—it's about protecting innovation, navigating risk, and building companies the right way from the start. At Traverse Legal, we've helped everyone from token issuers and NFT projects to rug pull victims and DeFi founders build, protect, and defend their businesses.
So, how can a crypto lawyer help you and your company?
It's a great question, and one that you should ask yourself. We define a crypto lawyer as someone who understands how blockchain technology works. Understanding the technology is important for providing legal value. Here's a breakdown of our core services to clients operating in the crypto, Web3, and blockchain ecosystem. And yeah, it's a long list—but that's the point. Crypto isn't one thing. It's everything happening at once, on-chain and off.
Investigating Crypto Fraud and Rug Pulls
Not all crypto failures are accidental. Some projects are built on deception—fraudulent whitepapers, misappropriated funds, insider token dumps. We represent victims of these so-called "rug pulls," helping them investigate what happened, trace crypto assets, and recover what they've lost. This work often involves blockchain forensics, working with government investigators, and filing claims in court or arbitration.
Crypto fraud is rampant. Recovering your investment requires a level of expertise that few lawyers possess. Whether the founders are anonymous or doxed, you will not only want to send threat letters, but also improve your chances of recovering funds. Given the global and extra-territorial nature of NFTs' cryptocurrency and tokenization, identifying a workable strategy for recovery can be challenging. Regardless, you'd be amazed how often someone's "anonymous" wallet isn't as anonymous as they think.
Crypto Litigation & Dispute Resolution
When founders fight, investors feel misled, or tokens don't perform as promised, litigation often follows. We represent plaintiffs and defendants in fraud, breach of fiduciary duty, partnership breakdowns, and token-based contract disputes. We also handle cross-border cases involving international exchanges and offshore DAOs. Sometimes it's two guys with a whitepaper and a handshake. Sometimes it's a $200 million protocol spiraling out of control. These projects go sideways in hundreds of ways, whether founders and partners fight each other, or disappear from their community. Chances are, we've already handled a case similar to yours. Either way, we show up.
Startup Formation & Corporate Structuring
Every crypto project starts with a choice: Where should we incorporate? What's the best entity structure? Should we form a DAO? We guide crypto founders through entity selection, founder agreements, token distribution frameworks, and multi-jurisdictional compliance. In some ways, starting a blockchain company, crypto project, or NFT offering is no different than starting any other technology company. There are several legal issues that every business startup needs to address. Unfortunately, the legal issues often get subsumed by the practical reality required to build out the technology, attract customers, and the other 1,000 tasks needing to be done daily. We encourage you not to ignore the legal aspects of your business venture.
Crypto Regulatory Analysis
Is your token a utility token or a security? Are you triggering SEC or CFTC oversight? We conduct Howey Test analyses, help structure token launches to mitigate regulatory exposure, and draft legal opinions for investors and exchanges. With the new Trump administration, the playing field continues to change. The general sentiment is that the current administration is much more friendly to crypto than prior administrations. While regulations have been promised, nothing has been set in stone. Understanding the prior and future regulatory landscape will be important as you decide how to set up your project.
Spoiler: if you're promising price appreciation and future gains, regulators might not care how many disclaimers you post.
KYC, AML, and BSA Compliance
Compliance can't be an afterthought, especially when handling user assets. We help projects design and implement KYC/AML programs, vet identity verification vendors, and understand when Bank Secrecy Act rules kick in.
Know your customer. Anti-money laundering laws, regulations, standards, and norms are starting to emerge. Understanding how to navigate KYC from the company and investor standpoint is one of the things our clients need to pay attention to. Money laundering isn't just the classic mob or drug ring activity. Anti-money laundering laws need to be considered in virtually every blockchain project.
Hint: if you think "we're just a protocol" is a get-out-of-jail-free card, it's not.
Trademark, Copyright & IP Protection
Intellectual property is mission-critical for every company, especially in the digital space. Your brand, your NFT art, your smart contracts—these are assets that need protection. We handle trademark registration, IP licensing agreements, copyright filings for creative works, and DMCA enforcement for stolen digital assets. We manage over 1,000 trademarks globally for clients big and small. We love helping companies create and protect their company and product names and slogans. Most clients underestimate the importance of establishing their brand as a critical aspect of market position and intellectual property value. This assumes you can find an available word or phrase that doesn't infringe on someone else's trademark. Branding is a tremendous market barrier if done correctly.
And yes, we've had to explain to clients why you can't copyright a token name called "MoonScam9000."
DAO Legal Structuring
Decentralized Autonomous Organizations (DAOs) present unique legal challenges. We help clients form DAOs in jurisdictions like Wyoming, draft governance frameworks, and limit liability for contributors and tokenholders. As these loosely associated organizations seek legitimacy, proper structuring for your DALL and token holder participation is often an important business goal with very few guideposts. You can decentralize decision-making, but you can't decentralize liability without a plan.
Platform Policies: Terms of Use & Privacy
One contract stands between you and everyone who visits your website. These are your website agreements. Those agreements provide your most crucial liability protection. And if you offer a service requiring a login, you likely have a software-as-a-service agreement or platform-as-a-service agreement, which will define the contract between you and your registered users. You will either protect yourself with the contract language or expose yourself to unnecessary liability. A crypto lawyer can help you draft custom website agreements addressing your legal issues. Crypto platforms need ironclad Terms of Use, Privacy Policies, and Disclaimers to protect against user litigation and regulatory scrutiny. We draft policies that account for platform risks, token volatility, wallet integration, and GDPR compliance.
You don't want your terms copied from a SaaS startup. Crypto law is its own beast.
Web3, NFTs & Emerging IP
Some people say that the age of NFTs is over and that Bored Apes will no longer roam the digital landscape. We have news for you. The obvious benefits of tokenizing assets and other valuable use cases for NFTs are just emerging. Smart contracts are here to stay. NFTs raise big legal questions—who owns the art? What rights do users get? We help NFT projects and marketplaces navigate copyright, right of publicity, and smart contract licensing issues. We've also advised on AI-generated NFTs and digital avatars. Not all JPEGs are created equal. And no, right-click-saving is not legal ownership.
Final Thoughts
Crypto law isn't just a niche—it's a legal frontier. Whether you're building the next layer-one protocol or just trying to get your token project off the ground, the right legal strategy can make or break your success. At Traverse Legal, we help crypto founders and investors navigate complexity with clarity.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
