Cryptocurrency and Digital Asset Litigation Cryptocurrency – Bitcoin, Ether, Litecoin, Ripple, and others – is a transformative digital asset that is traded on online exchanges for conventional currencies, including the U.S. Dollar, or used to purchase goods or services online. Despite its growing popularity and acceptance, the volatile nature and lack of regulation of cryptocurrencies have left many investors vulnerable to fraudulent practices and losses.
At Silver Miller, we are pioneers in the evolving field of cryptocurrency law. Our attorneys have represented hundreds of cryptocurrency users who have been deceived or suffered losses due to unscrupulous practices by cryptocurrency exchange operators. We’ve achieved notable results in legal disputes, including individual, group, and class action claims against prominent cryptocurrency exchanges such as Bitcoin Savings and Trust, Cryptsy, Kraken, and Poloniex. Our groundbreaking work in this area has been recognized by American Lawyer Media multiple times with its Professional Excellence Award for Most Innovative Law Practice.
Cryptocurrency Fraud and Mismanagement From prosecuting Ponzi schemes to fighting against manipulation and security failures of exchanges, we have been instrumental in securing justice for victims of cryptocurrency fraud. Our victories include a $11.2 Million judgment against Bitcoin Savings and Trust and its founder/operator, Trendon Shavers, and securing judgments and settlements exceeding $10 Million against Cryptsy and its founder, Paul Vernon.
We have also successfully pursued a class action claim against BitConnect, one of the largest cryptocurrency exchanges in the United States. We likewise successfully prosecuted a $50 Million group arbitration claim against Kraken for its platform failures and inadequate security measures.
Furthermore, we have represented aggrieved investors in class action lawsuits against Initial Coin Offering (ICO) promoters including Tezos, Monkey Capital, and Giga Watt. Our fight has provided our clients favorably returns against misleading or false inducements that secured cryptocurrency investments and unregistered and fraudulently-offered securities.
Defending Cryptocurrency Investors We continue to fight for the rights of cryptocurrency users in various areas, including:
Cryptocurrency Ponzi schemes Anti-Money Laundering safeguards and procedures Financial Crimes Enforcement Network (FinCEN) compliance Flash crashes Initial Coin Offering (ICO) compliance Asset security Distributed Denial of Service (DDoS) attacks Forced account liquidations We stand with investors who have suffered losses due to cryptocurrency trading platform issues, SIM card swap hacks, market manipulation, and other security crimes. We strive to hold those responsible accountable through cryptocurrency litigation.
If you have been victimized in any of the above-listed areas, or if you’ve lost your investment due to cryptocurrency fraud or technical issues, contact us today to discuss your legal rights. We represent most cryptocurrency users on a pure contingency-fee basis. If our clients in such cases do not recover some or all of their cryptocurrency, we do not get paid a fee for our services.
What Is Cryptocurrency?
Cryptocurrency represents a groundbreaking advancement in the financial world, a digital or virtual form of currency that utilizes cryptography for enhanced security. Unlike traditional forms of currency such as the U.S. dollar or Euro, which are regulated by central banks, cryptocurrencies operate on a decentralized network of computers using technology known as blockchain. This revolutionary technology ensures secure, transparent transactions, and allows users to have control over their financial assets. Some of the most well-known cryptocurrencies include Bitcoin, Ethereum, Ripple, and Tether, but there are thousands of different types in existence, each with their own unique features and uses.
Cryptocurrency Scams and Volatility With the extraordinary rise in popularity and value of cryptocurrencies, scams and fraudulent activities have unfortunately become commonplace. These scams can take on various forms, from Ponzi schemes where returns are paid to earlier investors with funds contributed by new investors, to pump-and-dump schemes where prices are artificially inflated and then suddenly sold off. Additionally, fake ICOs (Initial Coin Offerings) have been a source of fraud, where investors are tricked into buying nonexistent tokens. The highly volatile nature of cryptocurrencies, where the value can fluctuate dramatically in short periods, further compounds the risk for investors and makes the crypto market a fertile ground for fraudsters.
SIM Card Hacks One increasingly common form of cryptocurrency theft is through SIM card hacks. Also known as SIM swapping, this form of identity theft occurs when a hacker persuades a victim’s cell phone carrier to transfer the victim’s phone number to a mobile device that is controlled by the hacker. Once the hacker has control of the phone number, they can bypass security measures such as two-factor authentication and gain access to the victim’s cryptocurrency wallets, online accounts, and personal data, leading to significant financial and privacy losses.
Types of Cryptocurrency Fraud Cryptocurrency fraud can take on many forms, which makes staying vigilant and informed crucial for protection. Some prevalent forms of cryptocurrency fraud include:
Ponzi and Pyramid Schemes: These schemes operate by using funds from new investors to provide returns to earlier investors, creating an illusion of a profitable investment.Fake ICOs: In these scams, fraudsters create a fictitious ICO, trick investors into buying nonexistent tokens, and then disappear with the funds.Market Manipulation: Here, malicious actors control the price or volume of a cryptocurrency to create misleading market conditions. They profit from the resulting price changes, often leaving other investors at a loss.Mining Scams: Scammers convince investors to buy into a cryptocurrency mining operation that doesn’t exist.They often use technical jargon and promising returns to lure victims into these scams.
Types of Cryptocurrency Claims We Are Reviewing At Silver Miller , we are committed to protecting the rights of cryptocurrency users. We are currently reviewing claims related to:
Unregistered and fraudulently offered securities: These are situations where ICOs or other crypto-assets were sold without proper registration or by misrepresentation. Misrepresentations and false inducements in ICOs: This includes instances where ICO promoters use deceptive or misleading tactics to encourage investment. Losses due to SIM card hacks: If you’ve suffered financial losses from SIM swapping, you may have a legal claim. Losses from Ponzi and pyramid schemes: Victims of these scams may have a right to compensation. Losses from flash crashes and market manipulations: These are instances where price manipulation or sudden market drops cause significant financial damage. Cryptocurrency Practice Areas Our practice areas in the field of cryptocurrency include:
Cryptocurrency Litigation: We are at the forefront of cryptocurrency litigation, representing individuals and groups who have been victimized in the crypto space. Crypto Exchange Disputes: We specialize in handling disputes involving crypto exchanges, where we protect the rights of individuals against malfeasance by exchange operators. Crypto Asset Recovery: We assist clients in recovering their cryptocurrency assets lost due to fraudulent activities, hacks, or other malpractices. Cryptocurrency Fraud and Scams: We work tirelessly to represent victims of cryptocurrency fraud and scams, helping them to recover their losses and seek justice. Crypto Exchange Disputes As the trading hubs for cryptocurrency, crypto exchanges play a crucial role in the market. However, disputes often arise due to factors such as platform outages, trading glitches, non-transparent policies, and security breaches. Our team of attorneys is skilled in navigating the complex legal landscape of crypto exchange disputes. We represent clients in individual, group, and class action claims against leading cryptocurrency exchanges. We’ve achieved significant victories in the past, such as securing judgments against Bitcoin Savings and Trust, Cryptsy, Kraken, and Poloniex.
Financial Advisors Selling Crypto Cryptocurrencies are becoming an increasingly popular asset class, leading many financial advisors to offer these investments to their clients. However, not all financial advisors have the proper understanding or comply with relevant ethical considerations when selling these volatile assets. We represent clients who have been misled or misguided by their financial advisors into making unwise cryptocurrency investments. If you believe your financial advisor acted in bad faith or did not adequately advise you of the risks associated with cryptocurrency, we can help.
Our Past and Current Lawsuits in Cryptocurrency Space At Silver Miller, we are proud of our track record in the cryptocurrency legal arena. Our relentless pursuit of justice for our clients has led to groundbreaking judgments and settlements. Our experience and successes include the following:
Bitcoin Savings and Trust and Trendon Shavers Case When Bitcoin Savings and Trust and its founder/operator, Trendon Shavers, were found to have operated a Ponzi scheme that lured in unsuspecting cryptocurrency users, we took up the mantle to represent some of those victims. We were able to secure a judgment exceeding $11.2 Million against Bitcoin Savings and Trust and Mr. Shavers, proving our commitment and effectiveness in representing victims of cryptocurrency fraud.
Cryptsy Case We represented victims in the landmark case against Cryptsy, the largest U.S.-based cryptocurrency exchange at the time. When Cryptsy abruptly shuttered its operations in early-2016, and its founder, Paul Vernon, absconded to China with approximately $8.2 Million in stolen cryptocurrency, we fought for the rights of the victimized customers. Our efforts secured judgments and settlements exceeding $10 Million against Cryptsy, Mr. Vernon, and their accomplices. Moreover, we obtained a precedent-setting ruling in which a federal judge ordered that 11,325 Bitcoin stolen from Cryptsy users — assets valued as high as $650 Million — be returned to the victims as a matter of law.
Kraken Case We also successfully resolved a $50 Million group arbitration claim against Kraken, a highly popular U.S.-based exchange. This case revolved around issues arising from Kraken’s platform failures and inadequate security measures.
ICO Fraud Cases We have represented crypto investors in class action lawsuits against Initial Coin Offering (ICO) promoters such as Tezos, Monkey Capital, and Giga Watt. These suits involve investors who were misled by false inducements to secure their cryptocurrency investments. We alleged that the pre-functional tokens offered by these issuers were, by definition, “securities” that had to be – but were not – registered with the appropriate securities regulators. We fought tirelessly to protect investors from such dangerous, fraudulently offered securities; and for those investors we secured favorable results.
For more information about our cryptocurrency investor lawsuits, click on the appropriate link(s) below:
Liquid Bits v. Bitcoin Savings and Trust and Trendon Shavers Leidel, et al. v. Project Investors, Inc. d/b/a Cryptsy, et al. In re BitConnect Securities Litigation Hodges, et al. v. Monkey Capital, LLC, et al. Stormsmedia LLC v. Giga Watt Victim of Crypto Fraud? If you have been a victim of crypto fraud, it’s essential to know that you have legal rights. Whether you have fallen prey to a scam ICO, suffered from a SIM card hack, or lost assets due to the wrongful acts of a cryptocurrency exchange or financial advisor, our team at Silver Miller can help. We are dedicated to holding fraudsters accountable and retrieving your lost assets. Our experienced attorneys understand the complex nature of cryptocurrency and are ready to fight for justice on your behalf.
Our experienced legal team is committed to fighting for the rights of cryptocurrency users. If you have been victimized in the cryptocurrency space, contact us to discuss your legal rights. We work on a contingency-fee basis, ensuring that we don’t get paid unless we recover some or all of your cryptocurrency.
Schedule your free consultation today and take the first step toward recovering your lost assets.
FAQs
Cryptocurrency is a type of digital or virtual currency that relies on cryptographic techniques for secure and anonymous transactions. Unlike traditional currencies issued by governments and central banks, cryptocurrencies operate on decentralized networks based on blockchain technology. Some well-known cryptocurrencies include Bitcoin, Ethereum, and Ripple. Cryptocurrencies have gained popularity for their potential as a store of value, a medium of exchange, and investment opportunities.
Blockchain is the underlying technology behind cryptocurrencies, and it serves as a decentralized and distributed ledger system. It consists of a chain of blocks, each containing a list of transactions. Once a block is added to the chain, it becomes immutable, meaning the information it contains cannot be altered or deleted. This transparency and security make blockchain an ideal technology for recording transactions in a tamper-resistant manner. Beyond cryptocurrencies, blockchain has applications in various industries, including supply chain management, healthcare, and voting systems.
Cryptocurrencies operate on decentralized networks of computers known as nodes. Transactions are grouped into blocks and added to a chain of blocks, forming a blockchain. Cryptography secures transactions, and private keys authenticate them. Some cryptocurrencies use mining to validate transactions, while others rely on different consensus mechanisms. Users store and manage cryptocurrencies in digital wallets, allowing peer-to-peer transactions verified by nodes. This system offers benefits like transparency, security, and reduced costs but also comes with risks, such as price volatility and regulatory challenges. Understanding these principles is crucial for safe and informed cryptocurrency use.
