Crypto Task Force
The Robbins Geller Crypto Task Force has been at the forefront of prosecuting cryptocurrency-related misconduct, developing and prosecuting one of the first cryptocurrency-related securities class actions, Dynamic Ledger. Robbins Geller’s cryptocurrency and blockchain technology expertise and securities and consumer protection litigation experience give its clients a critical edge in this rapidly developing space. The Firm’s Crypto Task Force – comprised of experienced litigators, investigators, damages specialists, and forensic accountants – investigates and prosecutes malfeasance on behalf of defrauded investors and consumers.
Robbins Geller is one of the nation’s leading complex litigation firms. The Firm has secured many of the largest class action recoveries in history – including against Enron, Valeant, Twitter, and Volkswagen – and is continually ranked among the top firms in the world in both the amount recovered and the total number of class action settlements for injured investors.
The Crypto Task Force recently filed a first-of-its-kind lawsuit against several venture capital and private equity firms that backed the now-bankrupt cryptocurrency exchange FTX.
Crypto and Blockchain: Rapid Growth, Reward, and Risk
Since Bitcoin’s 2009 launch, cryptocurrencies have grown astronomically, together with advances in the underlying blockchain technology. With a global crypto market capitalization that often exceeds $1 trillion, and a 2021 peak of over $3 trillion, opportunities for investors and consumers to gain exposure to the crypto sector abound.
Along with its growing promise, crypto investing poses perils for consumers and investors. Cryptocurrency markets have historically been lightly regulated, providing a haven for potential fraud, manipulation, and other deceptive practices. For example, a number of crypto issuers have sought to evade disclosure obligations by marketing crypto assets as non-securities even though the assets are properly categorized as securities under applicable law. Some crypto exchanges have also failed to segregate customer assets or misappropriated customer funds for their own purposes. Market participants have also leveraged the novelty of blockchain technologies to conceal old-fashioned frauds, such as “pump and dump” schemes, undisclosed self-dealing transactions, and false and misleading promotional campaigns.
After a series of high-profile scandals involving some of the most well-known cryptocurrency firms, including the collapse of FTX, the U.S. Securities and Exchange Commission has signaled a more aggressive stance towards misconduct in the crypto sector. In addition, President Biden has issued the Executive Order on Ensuring Responsible Development of Digital Assets, which addresses the benefits and risks of digital assets. That led to the creation of a Department of Justice network of prosecutors focused on cryptocurrency crime.
Civil litigation involving cryptocurrency assets has also increased dramatically as investors have suffered billions of dollars in losses in connection with alleged wrongdoing. According to Cornerstone Research, crypto-related federal securities class action filings increased 2,200% from 2016 to 2022.
Robbins Geller's Crypto Task Force is positioned to tackle the significant challenges posed by recovering assets for those injured by wrongdoing in the crypto space. For example, depending on the nature of the investment, various state and federal causes of action may be implicated, including consumer law claims, securities law claims, breach of contract claims, and/or various other state law causes of action.
If you suspect you have been victim of a cryptocurrency-related fraud or want more information about crypto, blockchain, or digital asset securities litigation, please contact Eric Niehaus at (619) 231-1058 or at EricN@rgrdlaw.com. Please note that reaching out to our Firm with an initial inquiry does not create an attorney-client relationship.