CRYPTO ASSET PROTECTION 

At Dilendorf Law Firm, we understand that protecting digital assets requires more than generic legal planning—it requires a strategy designed specifically for your lifestyle, goals, and risk exposure.

Since 2017, we’ve represented over 100 clients in crypto-related disputes, including theft, custody failures, SIM-swap attacks, and account takeovers.

We’ve helped clients recover stolen assets and build stronger protections going forward.

Why Crypto Asset Protection Matters

Digital assets—like Bitcoin, Ethereum, and tokenized investments—are exposed to risks that traditional assets are not.

These include:

• Exchange vulnerabilities: U.S. crypto exchanges disclaim liability for account hacks. If your funds are stolen, recovery is often up to you.

• Cyber threats: Phishing, SIM-swaps, malware, and insider breaches remain common attack vectors.

• Regulatory complexity: Navigating domestic and international compliance (FATCA, SEC, FinCEN) requires experienced legal guidance.
• Tax exposure: Missteps in reporting digital assets can trigger audits, penalties, or double taxation.
• Estate planning gaps: Most traditional estate plans fail to address crypto properly, putting your legacy at risk.

Personalized Strategies

There is no one-size-fits-all solution.

Every crypto asset protection plan we build starts with understanding the fundamentals:

• Your family situation
• Your residency and relocation goals
• The nature of your holdings (custody type, jurisdictions, volume)
• Tax profile and long-term planning objectives

From there, we design a legal architecture to protect your assets across litigation, divorce, compliance, and succession.

Domestic Tools: Trusts, LLCs, and FLPs

For many clients, domestic structures provide strong, flexible protection:

• Family Limited Partnerships (FLPs) – Offer control, valuation discounts, and protection during litigation or divorce.

• Domestic Trusts – Enable estate planning, creditor shielding, and can hold crypto through U.S. or foreign custodians.

• LLCs with Swiss Custody – Combine simplicity and privacy with high-end custody from Swiss or Liechtenstein banks.

Offshore & Hybrid Planning

For clients with international ties or larger portfolios, we offer global solutions:

• Cook Islands Trusts – Provide some of the strongest asset protection available worldwide.

• Swiss Banking Integration – Many clients choose to custody their crypto assets in Switzerland due to enhanced privacy, cost-efficiency, and custody technology.

• Hybrid Trusts – U.S.-based trusts with built-in clauses allowing for offshore migration based on triggering events such as relocation or political risk.

Regulatory Compliance & Tax Planning

Our attorneys assist clients in complying with:

• SEC, CFTC, and FinCEN rules
• FATCA, FBAR, and global tax treaties
• AML/KYC and cryptocurrency-specific regulations
• IRS reporting (Forms 8938, 3520, 3520-A) and tax-saving strategies

We also coordinate with CPAs to optimize estate plans and minimize tax burdens across jurisdictions.

Dispute Resolution & Recovery

If your crypto was stolen, mismanaged, or frozen—we can help.

Our team is skilled in arbitration, federal litigation, and settlement strategies involving:

• Exchange hacks and custody failure
• SIM swap theft and fraud
• Breach of contract or fiduciary duty

Contact Us

If you would like to discuss your specific needs, please don’t hesitate to contact us. You can reach us via email at info@dilendorf.com or give us a call at 212-457-9797.

Resources:

• What You Should Know About Asset Protection Trusts
• Fresh Look at State Asset Protection Trust Statutes
• Offshore Asset Protection Trust: Prudent Planning Device or the Last Refuge of a Scoundrel?
• The Estate and Gift Tax Implications of Self-Settled Domestic Asset Protection Trusts: Can You Really Have Your Cake and Eat it Too?
• Spendthrift and Discretionary Trusts
• Irrevocable Asset Protection Trust
• US Senate Report | Tax Haven Abuses: The Enablers, The Tools and Secrecy
• Domestic Asset Protection Trusts: Debtor’s Friend and Creditor’s Foe
• Asset Protection Trust – Cornell Law School
• Asset Protection for New York Residents
• Developing Trust in the Self-Settled Spendthrift Trust
• Abusive Trust Tax Evasion Schemes – Questions and Answers – IRS
• Abusive Trust Tax Evasion Schemes – Facts (Section II) – IRS
• Trusts: Common Law and IRC 501(c)(3) and 4947 – IRS
• Domestic Asset Protection Trusts – Brooklyn Journal of Corporate, Financial & Commercial Law
• A Fresh Look at State Asset Protection Trust Statutes – Columbia Law School
• Domestic Asset Protection Trust Alternatives Impact Traditional Estate and Gift Tax Planning Considerations
• Digital Assets and Intestacy

Cooks Islands Trust Resources:

• Cooks Island International Trust Act
• Cook Islands Asset Protection Law
• Asset Protection Trusts
• NYT Article: the Cook Islands, a Paradise of Untouchable Assets
• Behind the Corporate Veil: US Tax Court
• Protection Assets from Creditors Legally, Ethically, and Morally
• Offshore Asset Protection Trust: Prudent Financial Planning Device
• Foreign Trusts
• US Position on Offshore Tax Havens
• Guide to Law Online: Cook Islands Trusts
• Give the People What They Want? The Onshoring of the Offshore
• Use of Trusts and LLCs in Asset Protection
• International Trust and Estate Planning: Asset Protection Trusts
• US Senate Committee on the Judiciary: Fighting Financial Networks Through Transparency
• Cooks Island – International Monterey Fund
• What’s is the U.S. Position on Offshore Tax Havens?
• Asset Protection Trusts – Foreign Asset Protection Trusts