Crypto Industry Sees Surge in Lawsuits

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Crypto Industry Sees Surge in Lawsuits
02 Jun 2022
5 min read

News Synopsis

As investment in digital tokens and coins has become mainstream and the amount of money at stake has increased significantly, proceedings over cryptocurrency losses are increasing nationwide.

Even before the recent plunge in crypto prices, the industry has already seen a surge in proceedings in various forms. Many of the cases have been fueled by investors claiming that some digital coins were falsely touted and sold.

"We are seeing all the usual types of proceedings that will be seen in more traditional businesses," said Jason Gottlieb, a partner at Morrison Cohen LLP, who is following cryptocurrency-related proceedings.

Recent proceedings include a case filed in federal court in California over the loss of stablecoin GYEN. In the proceedings, GYEN issuer GMO-Z.com Trust Co. and crypto exchange Coinbase Global Inc. promote stablecoin fixed to the Japanese yen and make safer investments than more unstable cryptocurrencies. 

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