The cryptocurrency industry is facing a legal storm in 2025, with crypto class actions surging at an unprecedented rate. In just six months, the number of filings has nearly matched the total for all of 2024, signaling a dramatic shift in how investors are seeking accountability. What does this mean for the future of crypto?
Why Are Crypto Class Actions Surging in 2025?
According to a report by Cornerstone Research, six crypto-related lawsuits have been filed in the first half of 2025—almost double the seven cases recorded in all of 2024. This sharp increase highlights a growing trend of investors turning to civil litigation to address grievances. Key factors driving this surge include:
- Investors acting swiftly before market conditions shift or settlements finalize.
- Targets expanding beyond crypto issuers to include miners and “cryptocurrency-adjacent” companies.
- Half of 2025’s filings come from Burwick Law, including high-profile cases like Pump.fun and LIBRA memecoin.
How Cryptocurrency Lawsuits Are Reshaping the Legal Landscape
The rise in crypto class actions contrasts with a broader decline in securities litigation. While overall securities cases dipped slightly (114 in H1 2025 vs. 115 in H2 2024), crypto-related filings have intensified. Legal experts note that:
- Average case sizes are growing, indicating larger potential liabilities.
- U.S. enforcement has cooled under the Trump administration, leaving civil litigation to fill the gap.
- Investors are increasingly scrutinizing disclosures from crypto and AI companies alike.
What This Means for Crypto Investors and Companies
The surge in investor litigation underscores the need for greater transparency and compliance in the crypto space. Key takeaways:
- Companies must prioritize accurate disclosures to avoid “AI-washing” or misleading claims.
- Investors should conduct rigorous due diligence before engaging with crypto assets.
- Legal professionals with expertise in blockchain and securities law are in high demand.
Conclusion: A New Era of Accountability for Crypto
The rapid rise in crypto class actions signals a maturing market where legal risks are becoming as critical as financial ones. As lawsuits mount, the industry must adapt—or face escalating legal battles that could shape investor confidence for years to come.
Frequently Asked Questions (FAQs)
1. What types of companies are being targeted in crypto class actions?
Lawsuits now target not just crypto issuers but also miners, hardware sellers, and firms partnering with crypto companies.
2. How does this compare to AI-related lawsuits?
AI cases are also rising (12 in H1 2025 vs. 15 in all of 2024), often involving “AI-washing”—exaggerating AI capabilities to investors.
3. Why are crypto lawsuits increasing while SEC enforcement cools?
With regulators scaling back, civil litigation has become a primary tool for investor redress.
4. What should crypto investors do to protect themselves?
Conduct thorough due diligence, verify company claims, and stay informed about legal trends.
5. Could this trend slow crypto innovation?
While lawsuits may increase compliance costs, they could also foster more sustainable growth by weeding out bad actors.
