Stolen crypto? Your path to arbitration

Full transcript

0:11 Hi, I’m Max Dilendorf, a crypto attorney based in New York.

0:15 I’ve been practicing in the crypto space since 2017, and since 2019, my firm has been one of the first in the nation to represent victims of exchange-related crypto theft in arbitration and litigation.

0:32 For more than five years, we’ve been helping clients navigate complex legal disputes against U.S.-based cryptocurrency platforms. In this episode, we’re talking about User Agreements—the legal contracts you accept when opening an exchange account, and how they often hold the key to pursuing your claim through arbitration.

0:57 If you’ve reported unauthorized activity to your exchange and they’ve refused to reimburse your stolen funds—claiming they’re not liable—your next step is to carefully examine their User Agreement. In most cases, this document outlines the dispute resolution process and mandates private arbitration as your only path forward.

1:21 I’ll walk you through how to read and understand the key sections of the agreement, so you can take the right legal steps from the very beginning. Every U.S. crypto exchange publishes a User Agreement on its website, typically under a “Legal” or “Terms of Use” section.

1:40 Once an exchange denies liability, your focus should turn to the arbitration clause—this is the section that outlines how disputes must be handled. Almost always, it requires arbitration instead of filing a lawsuit in court. It’s critical to understand that User Agreements are enforceable legal contracts—even if you didn’t read the fine print before clicking “Accept.” By using the platform, you’ve legally agreed to its terms, and courts—and arbitrators—consistently uphold them. One of the first things to look for is the notice requirement. Many User Agreements require you to send written notice of your claim before you’re even allowed to file for arbitration. Depending on the platform, this notice period could be 30, 45, or 60 days. You have to follow the exact method of delivery outlined in the agreement—usually email, certified mail, or both—and retain proof.

2:44 Without submitting proper notice, you may not be permitted to initiate arbitration at all.

2:50 Next, identify the arbitration venue listed in the agreement. The three most common are: American Arbitration Association (AAA), Judicial Arbitration and Mediation Services (JAMS), National Arbitration and Mediation (NAM) Each of these providers has its own set of rules, filing procedures, and fee schedules. Understanding which one applies to your case is crucial—missing a procedural step can delay or completely derail your claim.

3:22 Our law firm has experience arbitrating cases in all three forums, which allows us to tailor your strategy to the specific procedures and nuances of each venue.

3:35 Each arbitration forum is different. AAA generally requires a formal demand submitted through its online portal and specifically developed rules for consumer claims.

3:51 JAMS often comes with higher fees but provides access to experienced arbitrators, especially in complex financial cases. NAM is used less but still appears in some crypto exchange agreements. Once you know your arbitration venue, visit the provider’s website and review their filing instructions.

4:19 Keep in mind, arbitration is not the same as court. These forums often limit discovery, follow relaxed evidentiary standards, and decisions are usually final—with very limited rights to appeal.

4:34 That’s why it’s so important to work with an experienced crypto attorney.

4:39 A qualified lawyer can assess the strength of your claim, draft an arbitration demand, and guide you through venue-specific procedures to avoid missteps.

4:51 The User Agreement is your roadmap, but navigating it without help can be risky.

4:57 Subscribe to your channel. If you need help reviewing your agreement or preparing your case, contact a crypto attorney for advice specific to your situation. Thanks for watching.

A transcript of the recording, so it reads as speech rather than as prose. It explains the law in general terms and is not advice on your own situation, which turns on facts this video cannot know.