Question: Lawyer would like to accept cryptocurrencies as payment of fees through Lawyer’s website. Lawyer would make an agreement with the Client at the beginning of the representation that Client will pay Lawyer’s fees at the conclusion of the representation with cryptocurrency. Lawyer would like to use a service to convert those cryptocurrency payments into U.S. Dollars at the point of sale and then transfer them to an appropriate account. Lawyer asks how to do so to comply with the Missouri Rules of Professional Conduct.

Answer: Lawyer may accept cryptocurrency for payment of earned fees. Cryptocurrency should be handled the same as any other payment of fees through property, and the fee must meet the reasonableness standard of Rule 4-1.5(a). Rule 4-1.5, Comment [4], provides that “a fee paid in property instead of money may be subject to the requirements of Rule 4-1.8(a) because such fees often have the essential qualities of a business transaction with the client.” Since the value of the cryptocurrencies may fluctuate, Lawyer should ensure that Client receives the protections of Rule 4-1.8(a), which requires:
(a) A lawyer shall not enter into a business transaction with a client or knowingly acquire an ownership, possessory, security, or other pecuniary interest adverse to a client unless:
(1) the transaction and terms on which the lawyer acquires the interest are fair and reasonable to the client and are fully disclosed and transmitted in writing in a manner that can be reasonably understood by the client;
(2) the client is advised in writing of the desirability of seeking and is given a reasonable opportunity to seek the advice of independent legal counsel on the transaction; and
(3) the client gives informed consent, in a writing signed by the client, to the essential terms of the transaction and the lawyer’s role in the transaction, including whether the lawyer is representing the client in the transaction.

Lawyer should also review Comments [1] – [4] of Rule 4-1.8 for additional guidance, as well as Missouri Informal Opinion 20050041. Since a third-party service must be used to convert the cryptocurrency to U.S. Dollars for the payment to occur, such payments are only appropriate for earned fees that are not to be placed in a client trust account, not advance paid fees or expenses that would be held in a client trust account in accordance with Rule 4-1.15(a). See Missouri Informal Opinion 2023-09.

Informal Opinions are ethics advisory opinions issued by the Office of Legal Ethics Counsel to members of the Bar about Rule 4 (Rules of Professional Conduct), Rule 5 (Complaints and Proceedings Thereon), and Rule 6 (Fees to Practice Law) pursuant to Missouri Supreme Court Rule 5.30(c). Written summaries of select Informal Opinions are published for informational purposes as determined by the Advisory Committee of the Supreme Court of Missouri pursuant to Rule 5.30(c). Informal opinion summaries are advisory in nature and are not binding. These opinions are published as an educational service and do not constitute legal advice.

To request an Informal Opinion, please visit: http://mo-legal-ethics.org/for lawyers/requesting-an-informal-advisory-opinion/.

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