Digital Assets

While digital assets and distributed ledger technologies have broadened in significance well beyond Bitcoin, the underlying technologies have created new challenges for financial reporting surrounding digital assets. Our in-house digital asset specialists can help you meet those challenges. An important part of our approach includes taking a step back and looking at your business holistically to better understand your business and related needs.

Cohen & Company has developed one of the leading digital asset audit, tax and advisory practices in the country, with more than 100 professionals providing in-depth expertise related to digital assets, initial coin offerings (ICOs), decentralized finance (DeFi), non-fungible tokens (NFTs) and digital asset exchanges. This expertise has enabled us to develop specific, tailored procedures for the audits of digital asset funds. Specifically, we serve more than 100 digital asset funds, working with new managers, administrators, exchanges and attorneys in this evolutionary sector of alternative investments. Our team goes beyond traditional audit and tax services to offer stable coin attest services; SOC reports for custodians of digital assets; crypto-specific outsourced CFO services; and crypto-specific operational risk assessment, process and controls design support.
 
As leaders in the industry we:

  • Are active in SEC and digital asset industry groups, such as the AICPA Digital Asset Working Group and the Chamber of Digital Commerce, to help educate regulators and establish best practices relating to digital assets;
  • Received the “Best Tax and Audit Provider” distinction in Hedgeweek’s 2022 US Digital Assets Awards; and
  • Are a founding sponsor of CoinAlts Fund Symposium, and sponsor and present at other key industry events.
 

Services

Tax Structuring & Compliance

  • Preparation of U.S. and state tax returns
  • Tax structuring and planning
  • Tax research and advisory
  • Fund-level tax compliance
  • Tax due diligence


Accounting & Attestation

  • Auditing financial statements for private and public funds
  • Auditing financial statements for cryptocurrency mining companies 
  • Attest services for technology companies and service providers within the digital asset ecosystem
  • Attestation examinations for stablecoins and digital asset platforms using the Proof of Platform Reserves standard
  • Digital asset-specific outsourced CFO services
  • Assessing valuation of digital assets including Simple Agreements for Future Tokens/Equity, other illiquid investments, and Non-Fungible Tokens
  • Proof of Reserves 


Governance Risk & Compliance Services

  • SOC 1 and SOC 2 reports including readiness assessments and internal controls consulting
  • Business strategy and enterprise risk management advisory
  • IT risk advisory and IT security consulting
  • Information technology due diligence
  • Vendor due diligence
  • Staff education on digital asset-specific risks and accounting issues

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