A brand new crypto litigation tracker from business regulation agency Morrison Cohen LLP reveals particulars of greater than 300 energetic and settled courtroom circumstances since 2013.
Morrison Cohen is a New York-based agency that caters to massive monetary establishments, entrepreneurs and early-growth stage firms, and makes a speciality of capital markets, enterprise litigation, actual property and chapter to call just a few. The corporate additionally has a cryptocurrency litigation crew.
The Morrison Cohen Cryptocurrency Litigation Tracker was published on Could. 3, and accommodates any case improvement associated to the U.S. Securities and Change Fee (SEC), Commodity Futures Buying and selling Fee (CFTC), the Division of Justice (DOJ) and sophistication motion/personal litigation.
The agency acknowledged that it’ll usually replace the tracker “ to incorporate the important thing rulings in these litigations,” and it additionally accommodates a bunch of “articles, webinars, and podcasts” and regulatory crypto bulletins from varied authorities businesses.
In line with the tracker — which is basically a prolonged pdf doc — there have been roughly 17 crypto circumstances that had been both introduced earlier than the courtroom or resolved in 2022 to this point.
The SEC, CFTC and DOJ mixed account for seven of these, with some excessive profile circumstances being the SEC v. the Barksdale siblings, who allegedly carried out a fraudulent preliminary coin providing (ICO) worth $124 million, and the SEC v. digital asset platform BlockFi, who agreed to pay a $100 million penalty for failing to register its crypto lending product.
Essentially the most notable of all nonetheless, is the continuing DOJ v.Ilya Lichtenstein and Heather Morgan case. The husband-wife duo are charged with an alleged conspiracy to launder funds regarding the 119,756 Bitcoin (BTC) Bitfinex hack in 2016. DOJ particular brokers had been in a position to seize 94,000 BTC across the time of arrests in February.
There can also be lots extra within the works this 12 months, contemplating the SEC introduced this week that it is going to be upping the headcount of its enforcement-focused “Crypto Property & Cyber Unit” to 50 dedicated positions.
At present we introduced that we’re bolstering the unit answerable for defending traders in crypto markets & from cyber-related threats. The newly renamed Crypto Property & Cyber Unit within the Division of Enforcement will develop to 50 devoted positions.
— U.S. Securities and Change Fee (@SECGov) May 3, 2022
The vast majority of motion has been over within the class motion/personal area nonetheless, with SafeMoon attracting essentially the most consideration after the crew was slapped with a class-action lawsuit over an alleged pump and dump scheme.
The category motion claims the venture recruited quite a few celebrities to attract in traders with allegedly deceptive data, with musicians resembling Nick Carter, Soulja Boy, Lil Yachty and YouTubers Jake Paul and Ben Phillips all mentioned to have promoted the BNB Chain-based token.
A novel case that appears to have principally flown beneath the radar is the Halston Thayer v. Matt Furie, Chain/Noticed LL, and PegzDAO from March.
The trio — which incorporates Furie, the unique creator of the beloved Pepe the Frog meme — is accused of fraudulent inducement, after allegedly promoting a one-of-one NFT that tanked in worth following an equivalent NFT drop that was launched totally free.
“Plaintiff alleges that defendants fraudulently misrepresented the worth of a Pepe the Frog NFT. Plaintiff paid $537,084 for a Pepe the Frog NFT created by Furie and bought by means of PegzDAO. A couple of weeks after the sale, PegzDAO launched 46 equivalent NFTs totally free, which allegedly decreased the worth of Plaintiff’s NFT,“ Morrison Cohen wrote.