Cryptocurrency has changed how people buy, sell, and invest, but it has also created new opportunities for financial criminal charges. In Illinois, state and local law enforcement have developed specialized units to investigate crimes involving Bitcoin, Ethereum, NFTs, and other digital assets. Because blockchain transactions are complex and technical, investigators often assume criminal intent where none exists. Understanding how these cases are investigated is the first step in protecting yourself.
Illinois does not have a single “cryptocurrency crime” statute. Instead, prosecutors use existing laws under the Illinois Criminal Code and Illinois Money Laundering Act (720 ILCS 5/29B) to pursue offenses involving digital assets. Crimes commonly associated with cryptocurrency include:
These charges can apply even if the alleged conduct occurred entirely online. If a victim, financial institution, or business is located in Illinois, state prosecutors can claim jurisdiction.
Illinois law enforcement has begun treating cryptocurrency like any other form of financial property. The Illinois State Police Cybercrimes Unit, the Cook County State’s Attorney’s Office, and municipal police departments often collaborate on cases. In many situations, state authorities also coordinate with federal agencies to access blockchain-tracking technology.
Investigators use specialized tools such as Chainalysis and TRM Labs to follow transactions across the blockchain. Even though crypto wallets are pseudonymous, every transaction is recorded publicly. When investigators connect a wallet address to an individual’s identity — for example, through an exchange account, bank transfer, or phone number — they can begin to build a criminal case.
Common investigative steps include:
Because digital trails rarely disappear, investigators often believe they have stronger evidence than they actually do. However, tracing technology can be unreliable, and false matches are common.
Many cryptocurrency investigations in Illinois begin at the state level but later expand into federal jurisdiction. This typically happens when:
At that point, defendants may face charges under federal statutes such as 18 U.S.C. §1343 (wire fraud), 18 U.S.C. §1956 (money laundering), or the Bank Secrecy Act. Federal cases carry harsher penalties and often involve asset forfeiture. A strong defense must be prepared for both state and federal prosecution from the start.
Because cryptocurrency is still new to most people, many alleged “crimes” begin as misunderstandings. Users may not realize they are violating state financial laws until investigators are already involved. Typical mistakes include:
Prosecutors often confuse technical errors with deliberate misconduct. For example, an investor who unknowingly receives stolen tokens through an online trade could be accused of money laundering, even if they never intended to break the law.
Defending these cases requires both legal and technical expertise. A Chicago defense attorney experienced in financial crime must understand how blockchain networks operate and how to challenge the government’s interpretation of transaction data.
Effective defense strategies may include:
Because most prosecutors are still learning how cryptocurrency works, knowledgeable defense counsel can often expose errors in how the case was built.
If you suspect you are under investigation for crypto-related activity, do not attempt to move, delete, or transfer digital assets. Investigators may view that as an attempt to obstruct justice. Instead:
Your lawyer can communicate with investigators, verify whether warrants or subpoenas are valid, and ensure your rights are protected throughout the process.
If you have been accused of cryptocurrency fraud, money laundering, or any digital asset crime in Illinois, contact Glozman Law right away. Our Chicago criminal defense team has deep experience with complex financial investigations and understands how to challenge blockchain-based evidence. We represent clients facing both state and federal charges and know how to protect your assets, your rights, and your future.
Call Glozman Law today to schedule a confidential consultation and get the defense you need before your case moves forward.
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