Attorney Disbarred After Misappropriating $4 Million in Bitcoin Funds

The Supreme Court of Georgia, the highest judicial authority of the U.S. state of Georgia, has disbarred attorney Diana McDonald on June 11 for misappropriating $4 million from a bitcoin escrow transaction. In 2019, McDonald acted as a fiduciary for a client involved in a Bitcoin deal that failed to deliver the promised cryptocurrency. Despite assurances that the funds were safe, McDonald had diverted the money to her personal accounts, family, friends, and other entities. Only $2.4 million was recovered by the third party, with $1.6 million remaining unreturned. The court found McDonald guilty of numerous violations of professional conduct, including dishonesty, fraud, and failure to safeguard client funds. Her petition to voluntarily retire was denied, and the court’s unanimous decision resulted in her disbarment.