Quiz 01R — Doctrinal Gaps: Restitution, Crypto Forfeiture, OFAC Liability | LawZeee

Question 1

Under 18 U.S.C. § 1030(e)(11), which of the following costs is explicitly included in the CFAA's definition of "loss"?

AAttorney's fees incurred by the defendantBRevenue lost by the victim due to interruption of service caused by the offenseCPunitive damages awarded by a civil courtDInsurance premiums paid by the victim before the incident

Question 2

In US v. Middleton, 231 F.3d 1207 (9th Cir. 2000), the Ninth Circuit held that which type of cost constituted cognizable CFAA "loss" even without proof of permanent data destruction?

ALost future profits projected over five yearsBCredit monitoring services voluntarily offered to customersCCosts to investigate the intrusion, restore systems, and hire a security firmDCivil settlement payments made to affected employees

Question 3

Under the Mandatory Victims Restitution Act (18 U.S.C. § 3663A), which statement most accurately describes the court's obligation to order restitution?

AThe court has full discretion to reduce restitution based on the defendant's ability to payBRestitution is required only where the defendant has liquid assets sufficient to payCThe court must order the full amount of each victim's losses regardless of the defendant's ability to payDRestitution is capped at the statutory maximum sentence in dollar terms

Question 4

Under the USSG § 2B1.1 loss table, how many offense levels does a loss amount of exactly $10 million add to the base offense level?

A+16B+18C+20D+22

Question 5

What is the statutory maximum prison term for a first-offense CFAA violation under 18 U.S.C. § 1030(c)(4)(B) when the offense affects a critical infrastructure computer?

A5 yearsB10 yearsC15 yearsD20 years

Question 6

In the Bitfinex hack recovery (US v. Lichtenstein and Morgan), how did the DOJ obtain the private keys needed to seize 94,636 BTC — the largest financial seizure in DOJ history?

ABy breaking secp256k1 elliptic curve cryptography using a quantum computerBBy exploiting a vulnerability in the Bitcoin protocol itselfCBy recovering encrypted files from a cloud storage account and cracking the file encryption (not Bitcoin cryptography) to find key materialDBy compelling Bitfinex exchange to reverse the transactions on the blockchain

Question 7

Under OFAC's September 2021 ransomware advisory, which of the following parties can face sanctions liability for a ransomware payment made to a designated group?

AOnly the organization whose systems were directly encryptedBOnly the individual who authorized the payment wire transferCOnly the ransomware group itselfDThe victim organization, any IR firm that facilitated payment, and any cryptocurrency exchange that processed it

Question 8

Evil Corp was designated by OFAC in December 2019. Following its designation, Evil Corp operators deployed ransomware under a series of alias names including WastedLocker, Hades, and Phoenix Cryptolocker. What is the core legal problem this alias rotation creates for victim organizations?

AThe alias names are trademarked, making it illegal to publicly attribute themBOFAC liability accrues at the time of payment to a sanctioned entity — not when public attribution is made — so paying an unrecognized alias of a designated group still creates sanctions exposureCVictims who paid alias-named ransomware must file a separate OFAC waiver for each alias variantDThe alias rotation resets the OFAC designation, meaning prior designations no longer apply to rebranded operations

Question 9

The sentencing enhancement under USSG § 2B1.1(b)(18) applies specifically to which type of conduct and adds how many offense levels?

AUse of a computer in any CFAA offense; +2 levelsBTargeting a victim with more than $1 million in losses; +4 levelsCCausing substantial disruption to critical infrastructure; +4 levelsDOperating as part of an organized criminal group; +4 levels

Question 10

Under the Landis v. North American Co., 299 U.S. 248 (1936) stay doctrine, which factor do federal courts weigh most heavily when deciding whether to stay civil proceedings pending a related criminal investigation?

AThe financial net worth of the defendant relative to the civil damages soughtBWhether the defendant has previously invoked the Fifth Amendment in any forumCThe overlap of factual and legal issues between the civil and criminal matters, and the stage of the criminal proceedingDWhether the civil plaintiff is a government agency or a private party