A crypto lawyer may (or may not) be able to help you if you lost your money in cryptocurrency and feel you have been misled to invest in it. But just like with any investment decisions, your options may be limited.
The trillion-dollar crypto collapse many have witnessed in the past few months have sparked increased legislation to regulate cryptocurrency. Currently, the SEC does not regulate cryptocurrency or cryptocurrency exchanges, but government may plan to change this soon. More legislators have proposed to regulate the cryptocurrency market.
With the crypto collapse, Bitcoin lost more than 50% of its value, while Ethereum, the crypto currency where most NFTs are exchanged, lost 65%. Many crypto investors lost money in the cryptocurrency market and have initiated private lawsuits and class actions against persons they feel are to blame.
With the government’s plan to increase legislation regulating the cryptocurrency market, many forecast that this increased legislation will result to more litigation.
Litigation in the cryptocurrency market
Currently, class action lawsuits have been filed against numerous celebrities and influencers for alleged false statements advertising the minor cryptocurrency EthereumMax. A former employee of NFT marketplace OpenSea was charged by the justice department for wire fraud and money laundering in relation to NFT trades. There are also other lawsuits filed against exchanges, such as Binance, especially in connection with cryptocurrency Terra’s dive in value to almost nothing. This class lawsuit claims that that Binance was trading and selling Terra, when Terra was not even registered as a security, and Binance was not even registered as an exchange or broker-dealer, perpetrating fraud among investors. Right now, companies who created cryptocurrencies that have collapsed, exchanges that traded that sale, and celebrities and influencers who promoted such cryptocurrency are all being sued. Even digital tokens, such as NFTs, are being alleged as unregistered securities. As of May 2022, more than 200 class actions and private lawsuits have been filed regarding cryptocurrency.
A cryptocurrency lawyer may be able to help you if you have lost your money in the cryptocurrency market. Should you need help in evaluating your case, 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.