DOJ Re-evaluates Crypto Victim Compensation: Shifting to Market Value

The U.S. Department of Justice (DOJ) is rethinking its approach to compensating victims of cryptocurrency fraud in federal cases. The DOJ recently published a notice outlining a major policy change, seeking to adjust compensation strategies in light of recent high-profile crypto collapses like FTX. The existing model currently uses the value of assets at the time of loss, often resulting in undercompensation for victims who have seen their holdings appreciate significantly since then.