What Are the Legal Implications of Profiting from a 51% Attack via Short-Selling?

The legal implications are severe, though complex due to the decentralized nature of cryptocurrency. Profiting from a 51% attack, especially when coupled with short-selling, could be viewed as market manipulation, fraud, or theft in many jurisdictions.

While enforcement is difficult, the attacker could face civil lawsuits from exchanges or investors and criminal charges for wire fraud or other financial crimes, depending on the jurisdiction.