If you think the headlines about Washington going easy on crypto mean Florida is going easy too, you are dangerously wrong. In 2025, the federal government made an unprecedented pivot. The SEC dropped roughly 89 cryptocurrency enforcement actions. The DOJ dissolved its dedicated crypto prosecution unit. The White House issued an executive order declaring the United States should be the “crypto capital of the world.” Meanwhile, in Tallahassee and in courtrooms across South Florida, the State of Florida did the exact opposite. New laws. More seizures. Bigger prosecutions. Florida’s Cyber Fraud Enforcement Unit is actively seizing cryptocurrency from exchange accounts. A Miami-area man was charged in February 2026 in connection with an alleged $328 million crypto Ponzi scheme. And a new bill would require every virtual currency kiosk in the state to obtain a money transmitter license — or face felony charges. This article explains exactly what changed, what Florida law says right now, and what a criminal defense attorney looks for when defending these cases. What the Federal Government Actually ChangedOn January 23, 2025, President Trump signed Executive Order 14178, “Strengthening American Leadership in Digital Financial Technology.” The order revoked Biden-era crypto frameworks, prohibited a central bank digital currency, and created a Presidential Working Group on Digital Asset Markets led by crypto czar David Sacks. Then came the enforcement reversals — rapid, sweeping, and historic.
◆ Timeline: The Federal Crypto Retreat
JAN 2025
Executive Order 14178 Signed
Revokes Biden crypto frameworks. Creates Presidential Working Group. Crypto czar David Sacks appointed.
FEB 2025
SEC Dismisses Coinbase Lawsuit
SEC v. Coinbase dismissed with prejudice. Signals end of “regulation by enforcement.”
MAR 2025
SEC Drops Kraken, Consensys, and Others
Approximately 89 total crypto enforcement cases dropped or frozen. BitMEX co-founders pardoned.
APR 2025
DOJ Dissolves NCET
DAG Blanche memo “Ending Regulation by Prosecution” shuts down the National Cryptocurrency Enforcement Team. DOJ declares it is “not a digital assets regulator.”
JUL 2025
GENIUS Act Signed Into Law
First-ever federal crypto legislation. Establishes stablecoin reserve requirements, AML/KYC compliance framework. Bipartisan vote: Senate 68–30, House 308–122.
⚠ CRITICAL DISTINCTION
The DOJ stopped pursuing crypto companies for being crypto companies. It did not stop prosecuting fraud, money laundering, terrorism financing, hacking, or sanctions violations involving cryptocurrency. Those prosecutions continue — and Florida state prosecutors are now filling every gap the feds left behind.
Florida Went the Other Direction: New Laws, More Seizures, Bigger CasesWhile Washington was pulling back, Tallahassee was building new tools to go after crypto-related crimes harder. Here is what Florida did in 2025 and 2026. HB 319: Virtual Currency Kiosk Regulation (2025)Florida has over 3,100 crypto ATMs — the second-highest count in the nation. HB 319 expanded Chapter 560’s money services business regulations to cover virtual currency kiosk operators, requiring them to obtain a license from the Office of Financial Regulation, comply with transaction limits and consumer disclosure rules, and provide refund mechanisms. Operators already running before January 1, 2026 had 30 days to register. Operating without a license is a felony under Florida law. Why does this matter for criminal defense? Because AARP Florida and FDLE issued a joint warning in February 2026 reporting $333 million in crypto ATM scam losses nationwide in 2025. Prosecutors are now armed with a licensing requirement that turns any unlicensed operator into a felon — even if the underlying transactions were legitimate. HB 1039 / SB 1038: Florida Strategic Cryptocurrency Reserve (2026)Filed in January 2026, these companion bills would authorize Florida’s Chief Financial Officer to purchase and hold cryptocurrency with an average market cap of at least $500 billion over the prior two years — effectively limiting the reserve to Bitcoin. Up to 10% of certain public funds could be allocated, though pension funds are explicitly excluded. The conditional effective date is July 1, 2026. The defense implication: Florida is simultaneously embracing cryptocurrency as a state investment and prosecuting individuals who use it. That tension creates arguments about regulatory ambiguity that an experienced defense attorney can use. Aggressive Crypto Forfeiture ActionsFlorida’s Cyber Fraud Enforcement Unit, operating within the Attorney General’s Office of Statewide Prosecution, is actively seizing cryptocurrency from exchange accounts on platforms including Coinbase, Kraken, Binance, and LBank. They collaborate with FDLE and local sheriff’s offices using blockchain analytics tools like Chainalysis. But these seizures are not bulletproof. In June 2025, a Wakulla County judge ordered a sheriff’s office to return over $500,000 in Bitcoin after finding the seizure procedures were improper. Defense attorneys are increasingly challenging the analytics methodology, the chain of custody for digital assets, and whether seized funds from a co-mingled exchange account actually belong to the defendant. Florida Crypto Fraud Charges: The Statutes Prosecutors UseFlorida prosecutors have a powerful toolkit of state statutes that apply to cryptocurrency fraud. Understanding these is essential for anyone facing an investigation or charges.
The “Organized Fraud” Statute Is the Real Weapon: § 817.034, Fla. Stat.Florida’s Communications Fraud Act criminalizes any systematic, ongoing scheme to defraud. Prosecutors love this statute for crypto cases because every single email, text message, social media post, or phone call promoting a fraudulent crypto project is a separate “communication” in furtherance of the scheme. That means hundreds of potential counts from a single investigation. The 2024 amendments made this even more dangerous: schemes targeting individuals aged 65 or older, minors, or disabled persons are automatically reclassified one degree higher. A scheme to defraud a senior citizen out of $25,000 in a crypto scam jumps from a second-degree felony (15 years) to a first-degree felony (30 years). Florida’s Money Laundering Act Explicitly Covers “Virtual Currency”: § 896.101, Fla. Stat.In 2017, Florida amended § 896.101 to define “virtual currency” as a medium of exchange in electronic or digital format. This resolved the ambiguity that nearly derailed the prosecution in State v. Espinoza, where a trial court initially dismissed money laundering charges against a Bitcoin seller because Bitcoin did not fit the old statutory definitions. The Third District Court of Appeal reversed in 2019 and reinstated the charges. The statute’s “should have known after reasonable inquiry” standard for transactions over $10,000 gives prosecutors broad leverage. This means you do not have to know the funds are illicit — if a reasonable person would have asked questions and you did not, you can be charged. Recent Florida Crypto Prosecutions: Real Cases, Real Consequences
$328M
Goliath Ventures Ponzi Scheme (Feb. 2026)
Christopher Alexander Delgado, 34, of Apopka, charged in the Middle District of Florida with wire fraud and money laundering. Promised “guaranteed” 3–8% monthly returns from crypto liquidity pools. Blockchain analysis revealed only approximately $1.5 million ever reached a cryptocurrency platform.
$263M
Bitcoin Social Engineering Ring — Miami Arrests
Malone Lam arrested in Miami (Sept. 2024) and Nicholas Dellecave arrested in Miami (Dec. 2025) for RICO conspiracy involving social engineering theft of over 4,100 Bitcoin. Lavish spending included nightclub tabs up to $500,000 per evening and a fleet of 28 exotic cars. Sentencing scheduled for April 2026.
$34M
Operation TORnado — S.D. Fla.
$34 million cryptocurrency forfeiture tied to dark web activity. Ethan Thomas Trainor pleaded guilty to attempted tax evasion for concealing over $1 million in cryptocurrency earned through dark web transactions. Used mixing services to obscure funds.
LANDMARK
FTX / Sam Bankman-Fried — S.D. Fla.
The marquee South Florida crypto prosecution. Bankman-Fried sentenced to 25 years on March 28, 2024 for stealing at least $8 billion in customer funds. $11.02 billion in forfeiture ordered. Appeal argued November 2025; ruling pending. Under the First Step Act, he may serve as few as 12.5 years with good-behavior credits.
How a Criminal Defense Attorney Fights Crypto Fraud Charges in FloridaAs a former prosecutor, I know how the State builds these cases. That means I know where the weaknesses are. Here are the defense strategies that matter in 2026.
DEFENSE 1: Lack of Criminal Intent
Prosecution must prove you knowingly and willfully intended to deceive. Evidence of good-faith conduct — legitimate disclosures, genuine belief in a project’s viability, documented compliance efforts — directly undermines the specific intent element. In a volatile market where projects fail every day, failure is not fraud.
DEFENSE 2: Regulatory Ambiguity and the Doctrine of Lenity
The Trump administration itself characterized prior crypto enforcement as “ill-conceived” and “reckless.” When the federal government admits the rules were unclear, the doctrine of lenity requires vague criminal statutes to be interpreted in the defendant’s favor. The original trial court ruling in State v. Espinoza applied exactly this reasoning before it was reversed on appeal.
DEFENSE 3: Challenging Blockchain Analytics Evidence
Prosecutors rely on tools like Chainalysis and TRM Labs to trace transactions. But these tools cannot identify intent behind a transaction. Moving crypto between personal wallets may look like laundering but could be routine portfolio management. The analytics methodology, error rates, and operator qualifications are all subject to challenge under the rules of evidence.
DEFENSE 4: Crypto Valuation Problems
Florida’s § 817.034 calculates offense severity using “market value at the time and place of the offense.” Cryptocurrency is inherently volatile. A $50,000 charge today could have been worth $15,000 at the time of the transaction. This directly impacts whether the case is charged as a third-degree felony (5 years) or a first-degree felony (30 years). Getting the valuation right can mean the difference between probation and decades in prison.
DEFENSE 5: Improper Seizure and Forfeiture Challenges
When law enforcement seizes crypto from an exchange account, they often grab everything in the account — including funds that have no connection to alleged criminal activity. Florida’s forfeiture statutes require the State to prove a nexus between the seized property and the offense. The Wakulla County ruling returning $500,000+ in Bitcoin shows these challenges work when properly litigated.
Frequently Asked Questions: Crypto Fraud Charges in Florida
What are the penalties for cryptocurrency fraud in Florida?
Under § 817.034, Fla. Stat. (the Communications Fraud Act), penalties scale by total scheme value. Schemes under $20,000 are third-degree felonies punishable by up to 5 years in prison. Schemes between $20,000 and $49,999 are second-degree felonies carrying up to 15 years. Schemes exceeding $50,000 are first-degree felonies with a maximum of 30 years. Targeting seniors or minors increases the offense by one degree.
Can Florida police seize my cryptocurrency?
Yes. Florida’s Cyber Fraud Enforcement Unit regularly seizes cryptocurrency from exchange accounts through civil and criminal forfeiture actions. However, seizures can be challenged. In June 2025, a Wakulla County judge ordered over $500,000 in Bitcoin returned to a claimant after finding improper seizure procedures. An attorney experienced in crypto forfeiture defense can evaluate whether law enforcement followed proper procedures and whether there is a sufficient nexus between the seized assets and the alleged crime.
Did the federal government stop prosecuting crypto crimes?
Not entirely. The DOJ disbanded its National Cryptocurrency Enforcement Team in April 2025, and the SEC dropped approximately 89 enforcement actions. But the DOJ explicitly retained authority to prosecute fraud, money laundering, terrorism financing, hacking, and sanctions violations involving cryptocurrency. Meanwhile, Florida state prosecutors are expanding enforcement to fill gaps left by the federal pullback.
Is selling Bitcoin without a license illegal in Florida?
It can be. After the Third DCA’s ruling in State v. Espinoza (2019), selling Bitcoin in Florida may constitute money transmission under Chapter 560, Fla. Stat., requiring a money services business license from the Office of Financial Regulation. Florida’s 2025 HB 319 further expanded these requirements to cover virtual currency kiosk operators. Operating without a license is a third-degree felony.
Do I need a lawyer if I am under investigation for crypto fraud in Miami?
Yes — immediately. Crypto fraud investigations in Florida can involve both state charges (organized fraud under § 817.034, money laundering under § 896.101) and federal charges (wire fraud under 18 U.S.C. § 1343, money laundering under 18 U.S.C. § 1956). A former prosecutor who understands blockchain evidence, crypto valuation challenges, and Florida’s specific statutory framework can identify defenses before charges are ever filed and potentially prevent an indictment altogether.
Facing Crypto-Related Criminal Charges in Florida?
Former Miami-Dade prosecutor. Free consultation. I understand the technology, the law, and the defense strategies that work.
Available 24/7 • Hablamos Español • Free Consultation
About the Author: Dennis Gonzalez Jr. is a Miami criminal defense attorney and former Miami-Dade Assistant State Attorney who handles state and federal criminal cases including fraud, money laundering, and cryptocurrency-related charges. His office is located at 11401 SW 40 Street, Suite 250, Miami, FL 33165.
The information in this article is for educational purposes only and does not constitute legal advice. No attorney-client relationship is formed by reading this article. If you are facing criminal charges, contact a licensed Florida attorney. Results vary based on the specific facts of each case. Dennis Gonzalez Jr. is licensed to practice law in Florida and Texas.
Comments are closed.
|
Dennis Gonzalez Jr.
Miami Criminal Defense Attorney Archives
March 2026
Categories
All
|
RSS Feed