Telephone:+1 (954) 516-6000
11780 W Sample Road
Coral Springs, Florida, 33065
Cryptocurrency — such as Bitcoin, Ether, Litecoin, and Ripple — is a digital, virtual form of currency that may be traded on online exchanges for conventional currencies, including the U.S. Dollar, or used to purchase goods and services online. The popularity and acceptance of cryptocurrency has increased dramatically since its introduction about a decade ago; however, because cryptocurrency has no single administrator or central authority or repository, its volatility and lack of external regulation and oversight has left many of its users in perilous situations fraught with fraud and abuse.
Our attorneys are at the forefront of this cutting-edge field of law, having represented hundreds of cryptocurrency users deceived and abused by cryptocurrency exchange operators in a variety of legal disputes. We have prosecuted individual and class action claims against Bitcoin Savings and Trust, Cryptsy, Coinbase, Kraken, and other leading cryptocurrency exchanges; and for our clients, we have achieved historic results.
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 prosecuted claims on behalf of some of those victims. Within months of commencing our action, we had secured a judgment against Bitcoin Savings and Trust and Mr. Shavers that exceeded $11.2 Million.
Likewise, when Cryptsy — the largest U.S.-based cryptocurrency exchange at the time — abruptly shuttered its operations in early-2016 and its founder, Paul Vernon, fled to China with approximately $8.2 Million in cryptocurrency stolen from Cryptsy customers, we prosecuted claims on behalf of the victimized customers of the exchange. Through our efforts, we were able to secure against Cryptsy, Mr. Vernon, and those that aided and abetted their theft, judgments and settlements exceeding $10 Million. In addition, we obtained a first-of-its-kind ruling in which a federal judge ordered that 11,325 Bitcoin stolen from Cryptsy users — assets valued as high as $50 Million — be returned to those users as a matter of law.
We are currently prosecuting class action claims against Coinbase and BitConnect— two of the largest cryptocurrency exchanges used by investors in the United States — and are investigating legal claims against additional exchanges as well to help those cryptocurrency users whose assets and trust have been wrongfully taken from them.
We likewise are prosecuting a $50 Million group arbitration claim against Kraken — one of the most popular U.S.-based exchanges — for issues arising from Kraken’s platform failures and inadequate security measures.
In addition, we have represented, and are currently representing, crypto investors in class action lawsuits against Initial Coin Offering (ICO) promoters Tezos, Monkey Capital, and Giga Watt. In those suits, we represent aggrieved investors who believe they were led astray by misleading or outright false inducements used to secure their cryptocurrency investments. Moreover, we have alleged in each of those suits that the pre-functional tokens offered by the issuers were, by definition, “securities” that had to be — but were not — registered with the appropriate securities regulators. Unregistered and fraudulently-offered securities are a serious threat to investors, and we fight tirelessly to protect investors harmed by such dangerous offerings.