Combining several decades of experience in financial services industries, information security, government enforcement, compliance, and securities regulation, Blackstone Law Group has emerged as a natural leader with regard to blockchain technologies, and the launch, use, and regulation of cryptocurrencies in the United States and abroad.
We help our clients from start to finish, often operating as a de facto general counsel to nascent organizations. We assist in areas such as the formation of entities and special purpose vehicles in the United States, Singapore, Caribbean, and elsewhere; we assist with capital raises, investor agreements, memoranda of understanding with founders and partners, preparation and review of investor pitch decks, and the drafting of cryptocurrency whitepapers.
On the regulatory front, we have provided our clients with Howey analyses to determine whether a particular cryptocurrency project would be regulated as a security by the U.S. Securities and Exchange Commission (SEC). Importantly, the filing of registration or exemption paperwork with the SEC turned on the outcome of our analyses and the participation of US investors. With regard to ICOs occurring abroad, we have assisted with protocols – both technical and legal in nature – to wall off US investors from participation.
On the technology front, we assist with the design and implementation of information security features required of cryptocurrencies to remain viable and foster an environment of trust. With high-profile breaches of cryptocurrency repositories occurring all the more frequently – and the costly investor and customer litigation arising from these breaches – we believe that information security should be a priority built into all underlying protocols and operations.
On the commercial front, we help our cryptocurrency clients negotiate and execute agreements with partners that are crucial to all ICOs, such as marketing agencies and development teams. Oftentimes, it is necessary to negotiate these instruments before a capital raise, because increasingly investors require detailed plans with specific milestones for the creation of an ICO’s underlying network, together with a realistic go-to-market strategy.
Alternative Fee Arrangements
Because we understand that most organizations seeking to launch a cryptocurrency are not fully capitalized, we have developed flexible fee arrangements that include deferred payments and equity interests. In short, we believe that having our skin in the game benefits all parties, and drives the Blackstone Law Group to work harder and smarter when our mutual successes are tied to each other.
We are founding members and general counsel to a cryptocurrency geared towards the film financing industry.
We acted as US counsel to the first cryptocurrency launched out of India.
We are general counsel to a US-based cryptocurrency and offshore hedge fund launching in early 2018.