Crypto Lawsuit

Nadrich Accident Injury Lawyers and its partners are actively investigating cases involving those who have lost money due to bad behavior by cryptocurrency exchanges and are using our expertise to help victims file a crypto lawsuit.

Small and large investors have lost digital assets worth billions of dollars in recent times. We are investigating how numerous platforms have exaggerated their companies’ financial strengths while hiding the risks associated with them from their investors.

• Investors might pay hefty prices if cryptocurrency exchanges misrepresented investments.
• These companies face intense scrutiny by regulatory agencies and cryptocurrency lawyers.
• Because of limited regulatory oversight, its investors are vulnerable to fraudulent schemes (such as Ponzi-like schemes) and digital hacking.

Our efforts focus upon holding all responsible parties liable for:

• Digital asset theft
• Fraudulent investment schemes
• Deceptive or misleading practices in the sale and promotion of cryptocurrency

We seek to protect investors from financial harm that results from the abuse or misuse of blockchain technology.

Call us today for a FREE consultation at (800) 718-4568 or contact us if you or a loved one lost money due to the bad behavior of a cryptocurrency exchange, a pig butchering scam or a bad actor. You may be eligible for substantial compensation by filing a Crypto lawsuit against the negligent exchange.

If you call us today:

• A cryptocurrency lawyer at our firm will give you a free consultation
• We’ll help you navigate through the legal world of cryptocurrency’s emerging technologies
• We won’t charge you a fee until we obtain compensation for your losses

Our Cryptocurrency Recovery Process

Quick Action/Reporting

We take action the moment you contact us.

We take you through the crucial initial steps:

• Reporting theft to law enforcement
• Telling crypto exchanges to possibly freeze accounts
• Preservation of evidence, such as communications and transaction records

Gathering Evidence

We meticulously collect, then organize documentation.

We do this thoroughly in order to strengthen any investigation or legal actions.

Blockchain Investigation

We use our blockchain analysis expertise to trace stolen assets through the blockchain. We employ:

• Real-time alerts and monitoring on the movements of assets
• Cross-chain analysis for following funds across numerous cryptocurrencies
• Potential recovery point identification, where we identify recovery points like identifiable wallets or exchanges

Developing Legal Strategy

We develop a custom legal strategy based on the findings of our investigation. This could involve:

• Preparations for civil litigation
• Collaborations with law enforcement regarding criminal proceedings
• Navigation of international jurisdictions, if necessary

Recovery Efforts

We seek every potential avenue for recovery. This might include:

• Negotiations with exchanges for frozen funds being released
• Civil litigation filed against perpetrators
• Collaborations with international partners, when necessary

Ongoing Support and Communication

We will keep you informed via regular updates through the entire process. We’re always available for your questions and concerns, and will explain complicated technical and legal concepts in understandable, clear terms.

Expectations and Timeline

Every case is unique. However, we act as quickly as we can to increase the chances of recovery. We will diligently pursue your case no matter how complex it is.

Handling Challenges

We are equipped well to handle numerous challenges in recovering cryptocurrency, including:

• An Evolving Landscape: We update our methods continuously to keep ahead of technological advancements and new scamming techniques.
• Jurisdictional Issues: We recover funds by navigating cross-border complexities.
• Anonymity: We overcome the anonymous nature of crypto via our advanced techniques regarding tracing.

At Nadrich Accident Injury Lawyers, we combine cutting-edge technology and legal expertise to provide you with the best chance to recover your crypto.

We can’t guarantee any outcomes, but we can assure you that we are committed to your case and relentlessly pursuing justice for you.

The Latest

Over the past year, the U.S. Department of Justice (DOJ) has dramatically expanded its enforcement actions against the criminal networks responsible for these frauds, leading to multiple major cryptocurrency seizures that may open the door to recovery for victims.

Current Federal Forfeiture Actions

Our firms are actively working within the following DOJ forfeiture actions:

1. Approximately 225,300,000 USDT — assets connected to fraudulent investment and “pig butchering” schemes.
2. Various Cryptocurrency Seized from Binance User ID 61886539 — approximately $163 million in seized cryptocurrency.
3. 127,271 Bitcoin (Prince Holding Group / Chen Zhi) — a recently announced seizure exceeding $15 billion in digital assetts.

Additional forfeiture actions are expected soon as law enforcement continues dismantling the laundering networks behind these crimes.

Our Database and Recovery Process

To maximize each client’s chance of recovery, we built a proprietary database that consolidates wallet data from DOJ civil-forfeiture filings and law enforcement seizures with the wallet information from our clients’ cases. 

It is vitally important for you to contact us and tell us how much you lost, from who and when. Contact us now for your free consultation.

Coinbase

• In April 2024, a lawsuit by customers of Coinbase was revived by a federal appeals court.
• The lawsuit included allegations that Coinbase, the largest crypto exchange in the United States, illegally sold unregistered securities, as well as claims the exchange failed to register as being a broker-dealer.
• In addition, Coinbase has been targeted by hackers in recent times.
• The platform has ended up acknowledging numerous data breaches affecting employees and customers, and the company is facing lawsuits regarding these breaches of data.
• The company, at one point, ended up being ordered to pay $50 million by the Department of Financial Services in New York over “significant” failures in compliance which made the exchange vulnerable to criminal conduct.

If you have lost cryptocurrency due to fraud, theft or hacking related to Coinbase, call us today for a free consultation. We can help you file a Coinbase lawsuit.

Kraken

• In November 2023, the SEC sued the cryptocurrency exchange Kraken, alleging that the exchange intertwined the services of a clearing agency, dealer, broker and exchange without registering as any of these function with the SEC as is required by federal law.
• The lawsuit alleges that this failure to register deprives its investors of significant protections and placed the funds of its investors at risk.
• In addition, a $50 million arbitration claim has been successfully prosecuted against Kraken regarding its inadequate security measures and platform failures.

If you have lost cryptocurrency due to fraud, theft or hacking related to Kraken, call us today for a free consultation.

Bybit

• The cryptocurrency exchange Bybit has been sued over $953 million worth of “misappropriated funds.”
• In addition, the public has been warned about Bybit by multiple world governments, including the governments of France and Hong Kong.
• Hong Kong’s government added the exchange to a list of suspicious exchanges, warning the public about the exchange being unlicensed.
• In 2023, the exchange had to pull out of the United Kingdom and Canada due to regulatory pressure.

If you have lost cryptocurrency due to fraud, theft or hacking related to Bybit, call us today for a free consultation.

Binance

• In March 2024, a federal court revived a lawsuit involving investors accusing Binance, the largest crypto exchange in the world, of violating United States securities laws when they sold unregistered tokens which ended up losing a great deal of their value.
• It was alleged that the exchanged failed to warn investors about “significant risks” associated with the tokens.
• While Binance had argued that securities laws didn’t apply to the exchange since it was hosted outside of the United States, the court found that securities laws apply to the exchange since token purchases became irrevocable in the country once they were paid for, and since the exchange used domestic Amazon servers in order to host its platform.
• In addition, the SEC has sued Binance, accusing the exchange of artificial inflation of trading volumes, diverting its customers’ funds, misleading investors and facilitating the trade of unregistered securities.

If you have lost cryptocurrency due to fraud, theft or hacking related to Binance, call us today for a free consultation.

Phantom Wallet And Atomic Wallet

Lawsuits have been filed against Phantom Wallet and Atomic Wallet, alleging that negligent security on the platforms has allowed hackers to steal the assets of users.

What Is Cryptocurrency?

Cryptocurrency entered the public consciousness in 2009 when Bitcoin was created. Crypto threatened to reduce the banking power of institutions and decentralize the entire financial system.

Since the introduction of Bitcoin, crypto’s market has seen exponential growth. Thousands of cryptocurrencies exist today. Some cryptocurrencies, like Bitcoin, are used in many types of financial transactions. Other cryptocurrencies’ applications are of the niche variety.

• Crypto is digital currency. No physical bill or coin exists.
• Go-between institutions like banks aren’t required for crypto transfers. It is received, sent and stored using digital wallets.
• Crypto isn’t backed by governments. It isn’t protected by governments, so it isn’t protected by things like deposit insurance.
• Crypto is sold and bought on currency exchanges such as Coinbase, Binance, Gemini and Kraken.
• Almost anyone can create cryptocurrencies.

What Nadrich Accident Injury Lawyers Is Doing For Those Who Lost Digital Assets

Nadrich Accident Injury Lawyers is performing investigations into possible arbitration claims and litigation against major cryptocurrency companies as well as individuals who promoted and ran the companies. If you have lost money (a minimum initial investment of $50,000) regarding your cryptocurrency investment (cryptocurrency, crypto staking, crypto loan, crypto token, etc.), please call us today for a free, confidential consultation so we can learn about your circumstances and make a determination as to if we can accept your case.

Wrongful Crypto Account Freezes

One way that cryptocurrency owners commonly lose money is when their crypto accounts are wrongfully frozen.

These freezes happen for a variety of reasons, but it is always frustrating for account owners when they happen because the freezes prevent them from executing trades and liquidating their assets. Nadrich Accident Injury Lawyers is actively representing those who have suffered from cryptocurrency account freezes, helping them regain assets.

Cryptocurrency Scams And Volatility

While crypto is virtual money, devaluation of cryptocurrency and crypto fraud can absolutely result in the loss of real currency:

• One of crypto’s defining aspects is extreme, sudden fluctuations in price. The value of a virtual coin can fluctuate drastically by the hour.
• The price of Bitcoin fell by over 76 percent in 2018, then increased by over 15 percent in one day the following year. This led to $14 million worth of additional market value in a single day.
• Later that year, the price of Bitcoin reached almost $14,000, only to crash down to $7,500 in a few months.

Fluctuations like these are normal. The value of Bitcoin was once $1,000 in 2017, but in December 2017 it was almost $20,000. Its value was then less than $8,000 just two months afterwards. A lot of people suspect that cryptocurrency prices are manipulated illegally by those who invest heavily in them.

Cryptocurrency is a popular target for fraudulent schemes intended to make a profit by taking advantage of investors. $9 million per day is lost to crypto scams. Common crypto scams include:

• Fraudulent wallets and exchanges: Hundreds of crypto exchanges exist. Fake exchanges, unfortunately, are quite common, as are fake wallets, which can be clones of legit wallets.
• Initial coin offering fraud: Initial coin offerings (ICOs) allow companies or individuals to raise funds for new cryptocurrencies by offering virtual coins in exchange for real currency. Those who commit fraud might tout ICO “investment opportunities” which are simply scams to steal digital wallets or coins.
• Phishing: Hackers attempt to obtain crypto investors’ personal information in order to steal their cryptocurrency, often using tactics such as fake Airdrops.
• Ponzi schemes: These schemes have been around since the 1920s, and are now seen in the cryptocurrency world.
• Impersonation: Fraudsters create fake accounts on social media sites which impersonate genuine cryptocurrency executives or businesses, and use these accounts to compromise or defraud others. Fraudsters might also pretend to be support staff for cryptocurrency exchanges.
• Pump And Dump Schemes: An old trick regarding the stock market is to drive the price of stock up, then sell off your holdings at an artificially-created peak. In the cryptocurrency world, this type of scheme is common at the stage of ICOs or later, whenever demand can be hyped up by false claims, allowing those holding the cryptocurrency to earn huge, phony profits.
• Pig Butchering Scams: These scams, named after fattening hogs prior to slaughter, involve scammers creating fake identities, forming (often romantic) relationships with their targets to gain their trust, then convincing the targets to invest large amounts of money in crypto, which the scammers eventually steal. – See: DOJ’s $15 billion pig butchering scam bust

Crypto Theft Lawyer

Hackers and fraudsters are increasingly finding ways to steal cryptocurrency from investors:

• Crypto.com had a hacker steal $30 million worth of crypto from almost 500 users’ wallets.
• Wormhole had a hacker steal $320 million worth of digital assets.

Cryptocurrency exchanges have a duty to provide their customers with adequate security which protects them from hackers and fraudsters. If you have had your crypto assets stolen due to inadequate security, you may be able to recover financial compensation from the crypto exchange who negligently failed to adequately secure your assets.

SIM Card Hacks

A customer of T-Mobile lost $8.7 million worth of cryptocurrency when the company allowed a hacker access the customer’s account multiple times. Prior to this occurring, the Federal Trade Commission warned about the possibility of fraud regarding cell phone service providers, a type of fraud known as SIM swap scams or SIM card swap hacks.

The way SIM card hacks work is as follows:

• A hacker makes contact with your cellular service provider and manipulates them into switching your phone number to a SIM card under their control
• The hacker can now receive texts and calls that are meant for you – including crypto account access codes
• The hacker receives crypto account access codes using the SIM card to access and take money from your crypto accounts and bank

When this occurs, it’s likely that your cell phone service provider violated federal law when they gave the hacker your information. In this case, you may be able to seek financial compensation from your cell phone service provider in a SIM card hack lawsuit.

Mishandling Of Cryptocurrency Funds

Parties involved in cryptocurrency transactions sometimes lose cryptocurrency. This has occurred in many high-profile instances, such as scandals involving Mt. Gox as well as individuals who were careless regarding computer equipment.

You may have entrusted cryptocurrency to a crypto exchange which lost it. You may have been involved with a transaction involving a loss of your cryptocurrency by an escrow agent. You are entitled to attempt to recover losses when you trust others to hold onto valuable assets.

However, blockchain ledgers work in unusual ways, and digital currency involves anonymity features which are built in. Because of this, it can be tough to prove that another person had custody of your funds. That being said, transaction evidence can still be discovered by:

• Investigating blockchain ledgers
• Investigating correspondence such as emails
• Consulting with expert witnesses

How Much Does A Cryptocurrency Lawyer Cost?

Nadrich Accident Injury Lawyers is handling crypto cases on a contingency fee basis. This means:

• You will not be charged a fee if we don’t recover financial compensation for you
• You will only be charged a fee once we obtain a recovery for you, and that fee will simply be a percentage of the compensation we recover for you
• You will never owe us any upfront fee or any money out of your own pocket

Cryptocurrency Lawyers in California

If you have suffered cryptocurrency losses due to the negligence or fraud of others, you may be eligible for financial compensation in a crypto lawsuit. Nadrich Accident Injury Lawyers is dedicated to advising clients and helping those who have suffered losses due to cryptocurrency exchanges’ actions and are committed to making sure that you obtain the financial compensation you deserve.

While cryptocurrency and blockchain technology have opened new frontiers, they also present a lot of unknowns, leading to:

• Intervention
• Charges involving the Bank Secrecy Act
• Attempts at imposing oversight by the IRS, Financial Crimes Enforcement Network, SEC, Commodity Futures Trading Commission and additional federal authorities

Our experienced lawyers possess extensive knowledge regarding cryptocurrency laws, including federal and state laws, and have successfully obtained financial compensation for clients in a wide variety of situations. We and our partners possess expertise regarding areas such as:

• Securities and commodities laws
• Clockchain technology
• Corporate and securities laws
• Smart contracts
• Compliance
• Regulatory investigations
• Intellectual property
• Cybersecurity

We understand these complex cases and possess a commitment to utilizing our expertise in order to fight for your legal rights. Our crypto and blockchain lawyers advise clients regarding their cases involving crypto losses.

We’re here to assist you if you’ve suffered losses due to:

• Cryptocurrency fraud
• Misrepresentation
• Hacking
• A security breach
• Another issue

If you have invested in Bitcoin or other digital assets, our team of lawyers will:

• Advise you of your legal options
• Tirelessly work to protect your rights
• Obtain for you the compensation you deserve

Don’t hesitate to seek well-deserved justice. If you suffered a cryptocurrency-related loss, call us today for a free, confidential cryptocurrency lawsuit consultation.

Why Call Us For Your Crypto Lawsuit?

• Our experienced lawyers have been representing clients since 1990.
• We are here to assist you and will fight to make sure your rights get protected through every step of the legal process
• We have decades of experience and are committed to helping those affected by crypto exchanges’ actions
• We can provide you with the representation and legal support that you need in order to succeed

Call us today at (800) 718-4568 or fill out our quick online contact form for a FREE consultation.

Crypto Lawsuit Updates

October 17, 2025 Update

April saw Tether, a stablecoin user, freeze $44.7 million of USDT after a request was made by Bulgarian police.

Riverstone Consultancy Inc. from Houston, Texas is now suing in order to get the money back.

The company has alleged that Tether illegally froze the tokens, leading to the company missing out on investment opportunities.

The lawsuit alleges that Tether failed to follow proper procedures to freeze assets.

The lawsuit states that such requests to freeze assets need to go through specific procedures which require exchange and file information between the foreign affairs liaison and Bulgarian central authority.

Riverstone is accusing Tether of unjust enrichment, breach of fiduciary duty and “conversion,” which is improperly controlling another’s property.

October 16, 2025 Update

In October of 2025, the U.S. Department of Justice (DOJ) announced it had seized $15 billion in crypto from an alleged Cambodian cryptocurrency scam ring.

The criminal organization had employed “pig butchering” tactics in order to defraud victims of their funds. This is the largest seizure in the history of the DOJ.

October 14, 2025 Update

Tether has paid $299.5 million in order to settle claims involving the Celsius Network bankruptcy estate.

Celsius had filed a lawsuit seeking to recover almost $4.5 billion worth of bitcoin. The lawsuit, which was filed in August of 2024, claimed that Tether did not properly liquidate Bitcoin collateral prior to the July 2022 Celsius bankruptcy.

Tether had claimed that it acted lawfully by liquidating Bitcoin at the direction of Celsius in order to cover a debt of $815 million.

Celsius had countered that Tether did not provide a contractually-required 10-hour long window to deposit more collateral prior to liquidating the Bitcoin, destroying the residual interest of Celsius.

September 8, 2025 Update

The Attorney General of Washington D.C., Brian L. Schwalb, has filed a lawsuit against Athena Bitcoin, Inc.

The lawsuit alleges the company financially exploited D.C. residents via crypto ATMs.

According to the lawsuit, 93 percent of deposits made into the ATMs have been linked with scams, many of which ended up targeting vulnerable residents and seniors.

The lawsuit accuses Athena of knowingly profiting from hidden, illegal fees while not implementing any anti-fraud protections.

Officials found that almost half of deposits at the ATMs in D.C. were fraudulent.

The median age of victims was allegedly 71 and the median amount of money lost per scam was allegedly $8,000, with one victim losing $98,000.

Schwalb said that Athena knows its machines are used primarily by scammers, but chooses to ignore this so it can pocket transaction fees.

The lawsuit claims Athena charges up to 26 percent in fees without disclosing the fees, and enforces a “no refunds” policy when victims ask for refunds.

The lawsuit alleges that Athena facilitates financial scams, illegally profits from hidden fees and refuses to refund fraud victims.

July 17, 2025 Update

An investor based in New York has filed a lawsuit alleging that Edelman Financial Engines legitimized fraudulent, illicit cryptocurrency transactions when it failed to stop her plan to liquidate an IRA account in order to invest in a scam.

The lawsuit accuses Edelman of recommending she liquidate her account when it knew or should have known that this recommendation wasn’t suitable for her financial situation and investment objectives since the purported investment was going to a fraudster.

Edelman has disputed the claims, claiming that her planner told her about the consequences of the investment in crypto, yet she didn’t follow that advice.

According to the lawsuit, a fraudster messaged the plaintiff on TikTok claiming that they were an acquaintance who created an online course which the plaintiff had previously enrolled in.

The fraudster allegedly told her about a purported crypto trading platform which the plaintiff decided to invest in. The plaintiff agreed to deposit funds into the platform, and the platform would purportedly invest and trade for her while keeping 20 percent of any profit.

The plaintiff then moved to liquidate her whole IRA which was held at Schwab, allegedly contacting her advisor at Edelman, saying the liquidation was for the purpose of investment.

The plaintiff claims her request should have ended up raising red flags because Edelman knew or should have known she had no experience with investing large sums of money and didn’t have a high net worth.

The plaintiff allegedly eventually found out the scheme was a scam, and lost approximately $802,000.

May 29, 2025 Update

The SEC has announced that it is dismissing a lawsuit filed against Binance as well as Changpeng Zhao, its founder.

The commission had accused Mr. Zhao and Binance of lying to regulators regarding its U.S. operations and the mishandling of customers’ money.

The commission said the litigation was being dropped “in the exercise of its discretion and as a policy matter.”

April 18, 2025 Update

Dan Rayfield, the Attorney General of Oregon has sued Coinbase, alleging that the crypto platform violated Oregon securities law.

The lawsuit alleges that Coinbase facilitated the sale of unregistered crypto to residents of Oregon, leading to investors suffering significant financial losses.

Rayfield said that Coinbase sold “high-risk” investments to Oregon consumers which were not properly vetted.

The lawsuit alleges that Coinbase sold unregistered securities, which can be risky investments that are susceptible to fraud and pump-and-dump schemes, leading to investors losing money.

The lawsuit highlights an example, the crypto Internet Computer Protocol, an unregistered security that saw its price drop from $700 to just $72 within one month of it launching on Coinbase.

March 27, 2025 Update

The SEC has dismissed three enforcement actions which targeted cryptocurrency firms Kraken, Cumberland DRW LLC and Consensys Software Inc.

Joint stipulations were filed today to dismiss all three of these cases with prejudice, which means they can’t be refiled.

The SEC said that its decision to exercise discretion rests on a judgment that the dismissals will allow the commission to renew and reform its crypto industry regulatory approach.

In November 2023, Kraken was accused of operating an unregistered securities broker, clearing agency, dealer and exchange. The SEC had claimed that Kraken’s crypto services violated numerous U.S. securities laws provisions.

Consensys Software had faced similar claims, and Cumberland had been accused of being an unregistered dealer.

March 3, 2025 Update

Brenna Bird, the Attorney General of Iowa, has sued the two biggest crypto ATM operators in Iowa, alleging they’ve cost Iowa residents over $20 million.

In October 2023, CoinFlip and Bitcoin Depot were subject to an investigation for failing to protect its users against scammers who had millions transferred to them through crypto kiosks.

The investigation found that Iowans, mostly over 60, sent over $20 million through the companies’ ATMs in under three years.

Bird alleges that con artists are targeting widows through obituaries, convincing older women they need help and sending the victims to cryptocurrency ATMs, who take cuts of profits.

The lawsuit alleges that the companies profit from scam victims via transaction fees and deceive consumers about refund policies.

January 28, 2025 Update

A man from central Iowa has sued Wells Fargo as well as other banks, claiming he lost over $700,000 in a crypto scam due to their lack of due diligence.

The case involves a pig butchering scam.

The plaintiff claims that he was contacted by someone in June 2023 through WhatsApp and LinkedIn who presented him with an “opportunity” to invest in gold via crypto.

The plaintiff claims he agreed to invest in this scheme via numerous large wire transfers after being assured of significant returns. The scammer allegedly instructed the plaintiff to lie about the wire transfers’ stated purpose and offer the banks a less suspicious explanation for the withdrawals, like sending money to a friend or purchasing business equipment.

The lawsuit claims that Wells Fargo, at no time, ever asked the plaintiff questions about the transfers, like why his Vietnamese friend needed more money than a Vietnamese citizen’s average lifetime salary, or why this money was getting routed to numerous people.

The plaintiff allegedly used an online platform at fuexweb.net to view purported investment returns, and only discovered fraud after he tried to transfer funds out of the Fuex account. He wasn’t able to access his funds and the scammer cut off communication with him.

The lawsuit alleges that Techcombank, TPB and Hang Seng did not comply with anti-money-laundering laws and know-your-customer banking laws when they allowed accounts to be opened for the fraudsters.

The lawsuit claims these financial institutions did not have account signatories appear physical in person to verify their identity, possibly because of financial incentive that banks have for account managers who open new business accounts.

The lawsuit claims that Wells Fargo is lawfully obligated to identify and investigate any suspicious transactions made by elderly customers, as well as to intervene when investigations yield evidence of crimes.

The lawsuit alleges that ordinary or reasonable care would have led to Wells Fargo investigating the “highly suspicious” transfers, freeze the account, and take steps needed to protect the plaintiff’s assets.

July 11, 2024 Update

The judge presiding over a hearing on July 11 regarding the SEC’s lawsuit against Coinbase found that an argument made by Coinbase’s lawyer, that statements made by SEC Gary Gensler before he was sworn into office were relevant to the lawsuit, was “less helpful” and not convincing.

The lawsuit involves allegations by the SEC that the exchange violated securities laws by not registering as a clearing agency, exchange and broker.

June 28, 2024 Update

Some but not all charges in an SEC lawsuit against Binance were dropped today. Charges regarding unregistered securities’ secondary sales regarding the exchange’s Simple Earn program and BNB token were dropped. However, it was ruled that other charges against the exchange may proceed, including staking services, ongoing sales for BNB and BNB Valut, and the exchange’s initial coin offering, in addition to fraud charges and charges regarding not registering properly.

June 20, 2024 Update

A judge heard arguments today in the lawsuit by the SEC against Kraken, signaling the exchange faces an uphill battle regarding managing to get the case dismissed, stating he is “inclined to deny” the motion to dismiss by Kraken.

The SEC’s lawsuit accuses Kraken of violating the law by operating as an unregistered clearing agency, broker, dealer and securities exchange. The exchange is arguing that assets which are traded on Kraken aren’t investment contracts and are therefore not securities.

The judge stated that the term “investment contract,” as outlined in 1946 by the Supreme Court, is broader than suggested by Kraken, and that it appears as if assets traded on Kraken are investment contracts by definition.

The judge told Kraken’s lawyer “you’ve got your work cut out for you” in order to change his view.

April 21, 2024 Update

A group of crypto users who are involved in a class-action lawsuit filed against Sam Bankman-Fried, the former CEO of FTX, reached a proposed settlement, according to court filings which were filed on April 19.

It has been decided by the plaintiffs to pursue a case against promoters of FTX utilizing info from the criminal trial of Bankman-Fried rather than pursuing a judgment against the former CEO. It is believed this info will be valuable in plaintiffs’ cases against other defendants involved in the FTX MDL.

If the court approves the settlement, it would resolve the lawsuit filed by crypto users who are seeking compensation from Bankman-Fried for losses they suffered when FTX collapsed.

March 15, 2024 Update

The regulator of Hong Kong’s markets included cryptocurrency exchange Bybit in a list of suspicious crypto exchanges, flagging numerous products offered by the exchange as being suspicious investment offerings.

A public warning was also issued which highlighted that the exchange doesn’t operate with a license.

June 1, 2023 Update

In May 2023, the Judicial Panel on Multidistrict Litigation was told by a plaintiff’s lawyer that, despite objections over claims not overlapping, investor litigation regarding FTX’s collapse should undergo consolidation in Florida.

The JPML, on May 25, 2023, will hear arguments regarding the consolidation of plaintiff actions. The arguments will be regarding litigation of the 2022 collapse of cryptocurrency exchange FTX. Plaintiffs have requested consolidation regarding seven actions. They are asking for the actions to be consolidated in the United States District Court for the Southern District of Florida. The district also maintains a couple of pending class actions against FTX which were previously consolidated. These class actions named FTX executives and “insiders” as defendants, in addition to brand ambassadors such as Steph Curry, Shaquille O’Neal, Tom Brady and Larry David. FTX’s meltdown is described by the consolidation proposal as “the largest financial fraud in US history.” The proposal describes “unprecedented” fraud which caused investors around the world billions in crypto losses. It is expected that the case will be consolidated because of the large number of affected investors.

April 17, 2023 Update

On April 17, 2023, The SEC filed a lawsuit against Bittrex alleging that the crypto trading platform was operating as an broker, exchange and clearing agency for securities. The lawsuit alleges that Bittrex knew it was allowing securities to be bought, sold and traded on its platform, knew it should have registered with the SEC because of this, and, instead of registering, engaged in a campaign consisting of asking issuers of securities that it allowed the buying, selling and trading of on its platform to remove from the internet any statements implying their products were securities.

February 10, 2023 Update

On February 10, 2023, plaintiffs filed a request with the JPML. They requested that the increasing number of lawsuits over the collapse of FTX be consolidated before a single judge so pretrial proceedings can be coordinated. The cases allege their crypto assets were stolen and that they were blocked from withdrawing their assets.

January 12, 2023 Update

On January 12, 2023, the SEC filed a lawsuit against Genesis and Gemini, alleging that unregistered securities were offered and sold through Gemini Earn.