A new study of digital currency-related lawsuits since 2018 shows a 42% increase in cryptocurrency lawsuits by 2022. Last year saw the most lawsuits in a single year, with 41 lawsuits in total in the United States. The investigation also shows that most of the lawsuits came from the US Securities and Exchange Commission (SEC).
Rise in US Crypto Lawsuits Tracked Since 2018: Report
Similar to the price cycles experienced by cryptocurrencies, there are fluctuations in the number of U.S. cryptocurrency-related lawsuits filed each year, according to new research published by hedgewithcrypto.com. He study sees a 40% increase in cryptocurrency demands between 2018 and 2022, but there have been some declines between the peaks. Of all the years, 2022 saw the most lawsuits in the United States, with a total of 41.
“In 2019, there was a 30% decrease, as the number of lawsuits dropped from 30 to 21,” researchers at hedgewithcrypto.com explain. “This was followed by a spectacular increase of just under 62%, to 34 cases in 2020, before another drop to 28 in 2021. Finally, there was another increase (this time of more than 46%) in 2022, with 13 cases. more than in 2021.”
About 19 of the 2022 crypto lawsuits originated from the US Securities and Exchange Commission (SEC), as the country’s top securities regulator has been cracking down on unregistered securities and services. Over the years, lawsuits related to unregistered securities and services have been the most common in the crypto industry, with a total of 53 lawsuits since 2018. Initial coin offering (ICO) fraud accounted for 12 lawsuits, while theft or fraud equaled 10 lawsuits since 2018.
Cases of non-disclosure or illegal promotion of a cryptocurrency accounted for eight lawsuits, while false and misleading statements about a crypto product accounted for five of the total over the past five years. “The non-disclosure of payment for the promotion of crypto products is one of the most infamous crypto-related lawsuits, often involving celebrities,” the research says.
For example, the Emax promotional case involving Kim Kardashian and the SEC generated more than 50,000 articles on the subject registered in the Google search engine. The fewest lawsuits in the last five years were related to misrepresentation of company income and pyramid scheme fraud. Hedgewithcrypto.com researchers collected data from US SEC lawsuits and lawsuits filed by Stanford Law.
What do you think is driving the growing number of cryptocurrency-related lawsuits in the US? Do you think SEC regulatory action is necessary for the industry to thrive or does it stifle innovation? Share your thoughts in the comments below.
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