Crypto lawsuits up nearly 50% in 2022, study shows
Really broad interest in cryptocurrencies, and crypto exchanges, has recently peaked in the crypto industry’s first year compared to other financial sectors. As a result, there is still much debate about how to regulate and legally regulate crypto, and the public believes that many crimes using crypto go unpunished.
Over the past half decade, recent data has shed light on cryptocurrency cases in the United States by examining Securities Exchange Commission (SEC) crypto lawsuits as well as other class action lawsuits. Indeed, new research has revealed that crypto lawsuits will increase by 46% in 2022, according to information from a new study from HedgewithCryptowhich analyzed crypto lawsuits and shared the information with Finbold on February 10.
Since 2018, a total of 105 cryptocurrency lawsuits have been filed with the SEC, with 2022 being the highest one-year total with 41 claims, a 46% increase
This figure includes 19 SEC filings and 22 securities lawsuits. The latest crisis occurred in December as a consequence of the failure of the FTX trading platform, and the former CEO of the company, Sam Bankman-Fried, is currently out on $250 million bail as he faces a number of charges. which carries a maximum possible prison sentence of 115 years.
The second highest number of crypto lawsuits in 2020
With 34 cases filed, 2020 witnessed the second highest number of crypto lawsuits filed since 2018, an increase of over 62% from the previous year. Back in 2020, when cryptocurrency was booming, the value of Bitcoin increased from $7,175 on January 1 to $28,985 on New Year’s Eve, a 300% gain.
The SEC also filed a few high-profile complaints this year, including one against John McAfee, the late businessman accused of failing to disclose payments while pushing a cryptocurrency product.
Additionally, a total of 30 cases regarding cryptocurrencies were filed in 2018. Despite the fact that the use of cryptocurrencies is nowhere near as ubiquitous as it was in 2021, a total of 30 SEC and class action lawsuits were filed in the United States, with the SEC responsible for submission of 16 of these requirements.
Unregistered crypto assets were the most prevalent issue in cryptocurrency lawsuits filed by the SEC since 2018. Nearly half of all cases were related to this form of criminal activity, making it the most common issue in crypto lawsuits.
Currently, in one of the most high-profile cases, Ripple is battling the US regulator in a highly publicized lawsuit in which the SEC accuses the blockchain company of illegally selling the XRP token.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
