Explaining Digital Assets in the Context of a Criminal Case
Mohamed Abdullahi Khalif | Prosecutor
14 July 2024 | Somalia
Overview
On 14 July 2024, during proceedings in a homicide case, I delivered an explanatory presentation on cryptocurrency and digital assets after the circumstances of the case raised issues involving an alleged attempt to unlawfully obtain cryptocurrency.
Because digital assets formed an important part of the factual background of the case, it was necessary to explain the technology and financial concepts involved in clear and accessible terms. The Court needed to understand what cryptocurrency is, how digital assets can hold and transfer value, how digital wallets and electronic transfers operate, and why cryptocurrency was relevant to understanding the circumstances surrounding the alleged offence.
At the time, cryptocurrency remained a relatively unfamiliar concept to many members of the Somali public. Technical terms such as Bitcoin, USDT, digital wallets, trading and electronic transfers could therefore not simply be mentioned without providing sufficient context to explain what they meant and how they related to the case.
During my presentation, I began by explaining that cryptocurrency differs from conventional physical cash. Digital assets can exist and be transferred electronically without the physical movement of banknotes or coins. I also discussed how developments in computers, the internet and digital technology have contributed to the growth of digital forms of value.
I used Bitcoin as one of the best-known examples of cryptocurrency and explained how the value of a digital asset can change over time. This provided a practical way of demonstrating why cryptocurrency can represent substantial financial value even though it does not exist in the same physical form as conventional cash.
I also explained the distinction between investment and trading. Investment may involve acquiring an asset with the expectation that its value could increase over time, while trading involves making decisions to buy or sell based on anticipated market movements. Both can involve financial risk, and neither guarantees profit.
An important part of the explanation was that participation in financial markets requires knowledge, analysis and risk awareness. Market prices can change rapidly, and participants can experience both gains and losses.
The presentation also addressed the practical movement of digital assets.
Unlike large amounts of physical currency, which may be difficult to transport, digital assets can be held in digital wallets or accounts and transferred electronically. I referred to USDT as an example of a digital asset commonly used to transfer value and explained, at a general level, that such transfers ordinarily require relevant wallet or account information.
These concepts were important because the alleged criminal conduct before the Court involved an attempt to obtain cryptocurrency unlawfully. Understanding the nature and potential value of the digital assets therefore helped place the circumstances surrounding the homicide case into their proper factual context.
The purpose of my presentation was not to provide investment advice, promote cryptocurrency or encourage trading. Its purpose was to translate a technical financial subject into understandable courtroom language so that the relevance of digital assets to the criminal proceedings could be properly understood.
For me as a prosecutor, the case also demonstrated an increasingly important aspect of modern criminal justice. Criminal proceedings today can involve digital finance, electronic transactions, technology and other forms of technical evidence that may not be immediately familiar to everyone involved in the judicial process.
When this happens, evidence may require more than simply being presented to the Court. The underlying technology may also need to be explained.
The ability to connect technical concepts with the factual and legal questions before the Court is therefore becoming an important part of modern prosecutorial work.
Courtroom Video
Original Language: Somali
Date: 14 July 2024
Speaker: Mohamed Abdullahi Khalif
Role: Prosecutor
Subject: Cryptocurrency and Digital Assets in a Criminal Case
The video below contains part of the explanation I delivered during the court proceedings concerning cryptocurrency, digital assets and their relevance to the circumstances of the case.
Because the original presentation was delivered in Somali, an edited English transcript and translation is provided below for international viewers.