The cryptocurrency law firm of Nadrich Accident Injury Lawyers is actively representing those who have lost money due to bad behavior by cryptocurrency exchanges, such as misrepresenting financial strength and downplaying risk.
Small and large investors have lost digital assets worth billions of dollars in recent times. Nadrich Accident Injury Lawyers is 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.
Call us now or text us from this page if you or a loved one lost money due to the bad behavior of a cryptocurrency exchange. A cryptocurrency lawyer at our firm will give you a free consultation and help you navigate through the legal world of cryptocurrency’s emerging technologies. We won’t charge you a fee until and unless we obtain compensation for your losses.
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.
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 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.
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, and consulting with expert witnesses.
How Much Does A Cryptocurrency Lawyer Cost in California?
Nadrich Accident Injury Lawyers is handling crypto cases on a contingency fee basis. This means that 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.
Crypto Lawsuit Updates
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.
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.
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, and 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, blockchain technology, corporate and securities laws, smart contracts, compliance, regulatory investigations, intellectual property and 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.
Whether you suffered losses due to cryptocurrency fraud, misrepresentation, hacking, a security breach or another issue, we’re here to assist you. Our team of lawyers will advise clients of their legal options, tirelessly work to protect your rights and obtain for you the compensation you deserve if you have invested in Bitcoin or other digital assets.
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. Our experienced lawyers have recovered over $750,000,000 for our 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 now to learn more regarding how we can assist you.
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