US Crypto Lawsuits Hit All-Time High With 42% Increase in 2022; SEC cases dominate litigation –
A new study of lawsuits related to digital currency since 2018 shows a 42% increase in crypto lawsuits in 2022. The highest number of lawsuits in a single year was recorded last year, with a total of 41 lawsuits in the United States. The investigation also shows that most of the lawsuits come from the US Securities and Exchange Commission (SEC).
Rise in US crypto lawsuits since 2018: report
Similar to the price cycles of cryptocurrencies there are fluctuations in the number of US crypto-related lawsuits filed each year, according to a new study published by hedgewithcrypto.com. The study finds a 40% increase in crypto lawsuits between 2018 and 2022, but there have been some declines between the highs. Of any year, 2022 saw the highest number of lawsuits in the United States, totaling 41.
“In 2019, there was a 30% decrease as the number of lawsuits dropped from 30 to 21,” hedgewithcrypto.com researchers explain. “This was followed by a dramatic increase of almost 62% to 34 cases in 2020, before falling further to 28 in 2021. Finally, in 2022 there was another increase (this time by over 46%) with 13 more cases than in 2021.”
About 19 of the crypto lawsuits in 2022 came from the U.S. Securities and Exchange Commission (SEC) as the country’s top securities regulator cracked down on unregistered services and securities. Over the years, lawsuits related to unregistered services and securities have been the most common in the crypto industry, totaling 53 lawsuits since 2018. Initially, coin offering fraud (ICO) accounted for 12 lawsuits, while theft or fraud accounted for 10 lawsuits since 2018.
Secrecy cases or unlawful 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 payments for the Advertising for crypto products is one of the most notorious cryptocurrency-related lawsuits, often involving celebrities,” the study said.
For example, the Emax promotion case involving Kim Kardashian and the SEC generated over 50,000 articles on the subject that were indexed by the Google search engine. The fewest lawsuits in the past five years have involved corporate earnings falsification and pyramid fraud. Hedgewithcrypto.com researchers have compiled US lawsuit data from the SEC and lawsuits recorded by Stanford Law.
What do you think is driving the rising number of crypto-related lawsuits in the US? Do you think SEC regulatory action is necessary for the industry to thrive, or will it stifle innovation? Share your thoughts in the comments below.
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Source: Crypto News Deutsch
