Charged With Crypto & Wire Fraud: The Federal Criminal Process Explained

Understanding the federal criminal process is the first step to managing the fear and uncertainty that comes with a crypto fraud charge. Here's exactly what happens, from investigation through arraignment.

Phase 1: The Investigation

Most federal crypto fraud cases begin long before an arrest. Federal agencies — the FBI, IRS Criminal Investigation, or other investigative bodies — may spend months or years building a case. During this phase you may experience:

• Subpoenas — for documents, financial records, emails, and communications
• Search warrants — federal agents executing warrants at your home or business
• Grand jury subpoenas — compelling testimony or document production
• Target letters — formal notification that you are a target of a federal investigation
• Witness interviews — agents interviewing colleagues, employees, family, and associates

Critical: If you receive a target letter, subpoena, or visit from federal agents, you are already a subject or target. Hire counsel before responding to anything.

Phase 2: Indictment or Information

Federal felony charges typically come through a grand jury indictment. The grand jury hears evidence presented by the U.S. Attorney and votes on whether probable cause exists. Alternatively, the government may file a criminal information (with the defendant's consent, usually as part of a plea agreement).

An indictment for crypto fraud under 18 U.S.C. § 1343, 1348, 1349 means the government believes it has sufficient evidence to prove its case beyond a reasonable doubt.

Phase 3: Arrest and Initial Appearance

After indictment, you may be arrested (or allowed to self-surrender, if your attorney arranges it). Your first court appearance — the initial appearance — typically occurs within 24-48 hours. A magistrate judge will:

• Inform you of the charges
• Advise you of your rights
• Consider pretrial release or detention
• Appoint counsel if you cannot afford an attorney

Phase 4: Arraignment

At arraignment (usually within days of the initial appearance), you enter a plea — guilty, not guilty, or nolo contendere. Your attorney will almost always enter a not-guilty plea at this stage to preserve all options while reviewing discovery and negotiating with the government.

Phase 5: Discovery, Motions, and Plea Negotiations

After arraignment, the real work begins. Your attorney receives discovery — the evidence the government intends to use. This phase involves motion practice (suppression motions, dismissal motions, etc.) and, in many cases, plea negotiations with the U.S. Attorney's Office.