Bitcoin, the original and largest cryptocurrency, lost around 70% of its value from an all-time high of $68,000 to between $19,000 to $21,000 by end-June 2022. Bitcoin’s huge drop in value has been largely driven by the collapse of many cryptocurrencies and crypto-exchanges in the past months, such as Luna, Terra, and EthereumMax. Investor confidence in cryptocurrency has been flailing, with government adopting increased legislation to regulate cryptocurrency and protect investors.
SEC denied Grayscale’s application to make its Bitcoin Trust into an exchange traded fund. The Federal Reserve has likewise unacted on the application of Bitcoin bank, Custodia, for a master account that would allow them to bring new products and options to users of financial services. New York has just recently passed legislation imposing a two-year moratorium on mining of digital cryptocurrencies, such as Bitcoin, using former power plants and manufacturing sites.
Still, many are bullish with Bitcoin, which is considered a stable cryptocurrency. El Salvador has even adopted Bitcoin as legal tender, being the first country to do so. On the other hand, many have lost their investments, most of which are life savings, in the current collapse of the cryptocurrency market.
Many companies, such as Tesla, now accept Bitcoin as payment. More and more virtual transactions are also conducted with Bitcoin. This makes Bitcoin-related income taxable. However, Bitcoin income is difficult to track because it is not regulated. It is easier to transfer large amounts of funds using Bitcoin with little to no transaction fees because you are conducting business in a currency that is not subject to any regulation in any country. Because of this anonymity, many have used Bitcoin to launder money.
At this time, class lawsuits have been filed against celebrities and influencers who have promoted cryptocurrencies that have collapsed. Crypto-exchanges have also been sued for selling cryptocurrencies when they have not registered as a broker or dealer with the SEC. Cryptocurrency founders have also been sued for selling coins without registering them as securities with the SEC. These class lawsuits have been field in the hopes of recouping losses in the cryptocurrency market.
If you have lost your cryptocurrency investments, a bitcoin cryptocurrency litigation lawyer may be able to help you. A bitcoin litigation lawyer can evaluate your case to see if you can still recover your losses. We at the law offices of Albert Goodwin, are here for you. We have offices in New York, NY, Brooklyn, NY and Queens, NY. You can call us at 718-509-9774 or send us an email at firstname.lastname@example.org.