Challenges and Key Takeaways The recent case of The Trade Group, Inc. v. BTC Media, LLC highlights the impact that experts have on judicial outcomes. The litigation revolved around a financial dispute over the Bitcoin 2022 conference and allegations regarding overcharges and financial mismanagement. Through expert testimonies, the Court ultimately provided an opinion based on the crucial contributions of ex ...

Understanding the Fundamentals of the Industry The purpose of this article is to give other experts facing the challenge of completing a valuation of a Bitcoin mining facility some of the fundamental characteristics needed to understand the operations and assign value. A few months back I received a call from a potential client looking for a valuation of bitcoin mining company for purposes of a prenuptial a ...

Behavioral Underpinnings of Greed In this article, the authors discuss the unprecedented growth of cryptocurrency and the accompanying risks and fraud. They ask, Why does a person choose the characteristics of cryptocurrency to be not only a secure medium of exchange, but also one with upward price potential? The recent price drop in the spring of 2022 shows the magnitude of loss of value Bitcoin has suffer ...

The Dark Web Criminals Both the Financial Crimes Enforcement Network (FinCEN) and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) have issued recent advisories concerning ransomware payments. This article provides an overview of those advisories. Both the Financial Crimes Enforcement Network (FinCEN) and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) have ...

How Does it Work? Everyone seems to be talking about cryptocurrency these days, but many are unsure how to define it and fewer still, know exactly how it works. Cryptocurrency is a digital construct without physical substance; the only evidence of its existence is the digital record or ledger indicating balances held (like a balance sheet) and transactions that have occurred (like an income statement). What ...

No Tulip Bulbs Here! What is a non-fungible token (NFT)? How are NFTs valued? This article discusses NFTs and the valuation challenges these present. What is a non-fungible token (NFT)? Recently, the media has seemed to catch on to the new(ish) invention—NFTs. Even the recent episode of Saturday Night Live (SNL) has featured an entertaining segment explaining the nature of NFTs to the rhythmic beat of an Em ...

in the Cryptocurrency Economy Although cryptocurrency and blockchain technology create an environment that can help combat fraud within their systems, their introduction into the global economy has opened numerous doors for nefarious activity. This article provides an overview of what is cryptocurrency, blockchain technology, and the rise of threats to digital assets. Fraud used to be much simpler for the f ...

The assurance partner responsible for the development of blockchain services at Aprio LLP shares her insights into how the technology works and how to succeed with it. To read the full article in Journal of Accountancy, click: What I’ve Learned Building a BlockChain Business. ...

Tax ramifications, smart contracts, and job security are among the issues top of mind for accountants. Given blockchain's rapid rise into the accounting consciousness, it is no surprise CPAs have many questions about the technology. This article addresses five of the most pressing concerns I encounter regarding blockchain, smart contracts, and cryptocurrencies such as bitcoin. To read the full article in th ...

Removing third-parties speeds transactions and reduces their cost. CFOs and finance departments are always looking for reductions in cost and increases in speed and efficiency in business engagements. One option that is attracting more attention is the smart contract. To read the full article in the Journal of Accountancy, click: How Smart Contracts Can Create a Competitive Edge. ...

If you or your organization is interested in adopting blockchain technology, you need to know the difference between public and private blockchains.  One might be a better option than the other.  This blog post can help you decide. To read the full article in AICPA Insights, click: Public vs. Private Blockchains: What CPAs Should Know. ...

Retirees with multiple retirement accounts are advised to have a tax-efficient way of tapping into these accounts to minimize the tax bite, writes Morningstar's Christine Benz.  Retirees who have reached the age of 70 1/2 should take required minimum distributions from tax-deferred accounts, while those who are younger should draw from their taxable accounts, selling assets with the highest cost basis first ...

The FASB is conducting early stage research about developing an accounting standard for digital currency and the technology that underpins it.  With the use of digital currency increasing, proponents say inconsistent accounting practices are becoming a problem. To read the full article in Thomson Reuters, click: Bitcoin Seeks Recognition from U.S. GAAP. ...

Your Next Engagement Currency has played a central role in most business valuation and financial forensic engagements since the origination of the two terms. What has not been so clear lately is the changing nature of currency and for that matter, the very definition of money itself. This article explores how digital currencies originated, their attributes, and how they should be considered for your next va ...

Where the IRS stands on the classification of Bitcoin and the purchases made with it has been ambiguous. There are a lot of questions surrounding the virtual currency, not the least of which is how it factors in tax matters. While Bitcoin operates like real currency in some situations, the fact still stands that it has no legal recognition as currency in any jurisdiction. In spite of this contradiction, the ...

In the “good old days" before the crash of 2008, Wells Fargo generated $100 billion in mortgage revenue every quarter.  Now, it makes barely half that.  As the largest US bank by market cap, it’s now seeking alternative business and product lines to fill that unfathomable financial gap.  Sources say that Wells Fargo is exploring the idea that the virtual currency, Bitcoin, might be the perfect revenue repla ...