Investors are taking matters into their own hands as crypto class actions skyrocket in 2025. With regulatory enforcement slowing down, lawsuits are becoming the go-to tool for accountability in the volatile cryptocurrency market.
Why Are Crypto Class Actions Surging?
Legal actions against cryptocurrency companies are on track to nearly double this year. Cornerstone Research reports six crypto-related lawsuits filed in just the first half of 2025 – just one shy of 2024’s total. This dramatic increase reveals:
- Growing investor frustration with crypto projects
- A shift from regulatory actions to private litigation
- Increased scrutiny of crypto issuers and adjacent businesses
The Players Behind Cryptocurrency Litigation
Burwick Law has emerged as a major force, filing half of this year’s cases. Their high-profile targets include:
| Case | Details |
|---|---|
| Pump.fun | Platform facing investor allegations |
| LIBRA memecoin | Controversial project under legal scrutiny |
SEC Enforcement Slowdown Fuels Lawsuits
With traditional regulatory actions declining, investors are turning to civil courts. This trend mirrors a similar surge in AI-related litigation, where “AI washing” – exaggerating capabilities – has triggered numerous cases.
What This Means for Crypto Investors
As institutional players enter the space (public companies bought 131,000 Bitcoin in Q2 2025), the legal landscape grows more complex. Key implications:
- Higher expectations for transparency
- More disputes over disclosures
- Growing need for compliance expertise
FAQs About Crypto Class Actions
Q: Why are crypto lawsuits increasing?
A: Investors are frustrated with losses and regulatory bodies aren’t acting quickly enough, leading them to pursue civil actions.
Q: What types of crypto companies are being sued?
A: Cases target issuers (50%), miners, and “crypto-adjacent” businesses like hardware sellers.
Q: How does this compare to AI litigation?
A: Both sectors are seeing rapid growth in cases, with 12 AI lawsuits filed alongside 6 crypto cases in H1 2025.
Q: What should investors watch for?
A: Disclosure practices, partnership claims, and any exaggeration of technological capabilities could trigger future lawsuits.
