Crypto Lawsuits Surged Threefold This Year, Buyer Regrets?
Lex Machina is a law and order analysis organization who have constructed a report on crypto-related lawsuits. Researchers have seen that over the first half of the year, there were over 15 recent cases regarding blockchain, BTC, and digital assets in general. A total of 45 cases were recorded in the past year, and if this continues to be a pattern, then the crypto market can expect lawsuits to be increase by six times by the years-end.
A New Law Member of SEC
The tripling of lawsuits seems to be a result of the United States-based SEC’s regulations, as per the research by the National Law Journal. Recently, Jay Clayton, the present SEC head, had revealed initiatives to crack down on various companies and exchanges. Clayton had been nominated for his position only a few months back.
Price decreases in crypto tokens may be an additional cause of the boost in cases over the year. Only four cases pertaining to virtual currencies were registered in the last quarter of 2017, while 2018 saw a tripling of this figure in its first half.
Prominent Lawsuits Against Crypto
Several famous lawsuits were filed with the regulatory authority. Some common incidents are the cases related to Bitconnect as well as Ripple Labs. Ripple, however, has been pardoned in one of its cases after a settlement was made with the R3 organization.
The dispute rose on the grounds of compensation negotiations between Ripple and R3. According to details of the deal, the tech firm will have access to possess 5 billion tokens (XRP) at the cost of $0.0085 until 2019. But when XRP was being traded for $4 for each unit this year, the valuation of the negotiation had increased to $20 billion.
Bitconnect was allegedly involved in a Ponzi scam which resulted in a lawsuit filing against the organization in January 2018. Texas as well as North Carolina have already issued a desist order to Bitconnect.