Crypto class actions on pace to nearly double in 2025
Main Idea
The number of investor-led class-action lawsuits related to crypto in the US is on pace to nearly double in 2025 compared to 2024, with AI-related filings also increasing significantly.
Key Points
1. Cornerstone Research reports that 2024 saw seven crypto-related class-action lawsuits, while the first half of 2025 already has six crypto-related filings.
2. AI-related lawsuits are also rising, with 12 filings in the first half of 2025, driven by 'AI-washing'—companies exaggerating their AI capabilities.
3. Notable lawsuits include those against Pump.fun and the controversial LIBRA memecoin, filed by Burwick Law.
4. Former SEC Commissioner Joseph Grundfest noted that the increase in AI-related litigation reflects broader trends in financial risks and AI hype.
5. The rise in lawsuits occurs even as US agencies like the Justice Department and SEC have reduced their crypto enforcement actions.
Description
Crypto-related securities class-action lawsuits are already near their total for the whole of 2024, Cornerstone Research says.
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