Investors are taking matters into their own hands as crypto class actions skyrocket in 2025. With regulatory bodies like the SEC slowing enforcement, lawsuits are becoming the new battleground for accountability in the cryptocurrency space.
Why Are Crypto Class Actions Nearly Doubling in 2025?
According to Cornerstone Research, six crypto-related lawsuits were filed in just the first half of 2025 – just one short of the total for all of 2024. This alarming trend reveals:
- Half target crypto issuers
- One focuses on crypto mining operations
- Two involve “crypto-adjacent” companies
Burwick Law Leads the Charge in Cryptocurrency Lawsuits
This aggressive firm is responsible for half of 2025’s filings, including high-profile cases against Pump.fun and the LIBRA memecoin. Founder Max Burwick calls civil actions “a vital path to accountability” when regulators fail to act.
How AI Washing Relates to Crypto Litigation
Interestingly, AI-related lawsuits are rising in parallel. Stanford’s Joseph Grundfest points to “AI washing” – companies exaggerating AI capabilities – as driving similar investor frustration seen in crypto cases.
What This Means for Institutional Crypto Investors
With public companies buying 131,000 Bitcoin in Q2 2025 alone, the litigation risk grows exponentially. More institutional involvement means:
| Risk Factor | Impact |
|---|---|
| Disclosure requirements | More stringent |
| Compliance standards | Higher scrutiny |
| Investor expectations | Greater transparency demands |
The Future of SEC Enforcement in Crypto
As regulatory actions slow, civil lawsuits fill the gap. Other firms like Pomerantz LLP are joining Burwick in specializing in crypto litigation, suggesting this trend will only accelerate.
Conclusion: A Watershed Year for Crypto Accountability
2025 marks a turning point where investors increasingly turn to courts rather than regulators for recourse. As crypto matures, so do the legal mechanisms holding it accountable.
Frequently Asked Questions
What types of crypto companies face the most lawsuits?
Crypto issuers currently represent 50% of cases, followed by mining operations and service providers.
How does this compare to traditional securities litigation?
While overall securities suits remain flat, crypto and AI cases are growing disproportionately fast.
What’s driving the increase in crypto class actions?
Investor frustration with slow regulatory action and perceived misinformation in the sector.
Are these lawsuits typically successful?
Success rates vary, but the mere filing can significantly impact company valuations and investor confidence.
How can crypto companies protect themselves?
Transparent disclosures, conservative claims about technology, and proactive compliance measures.
Will this trend continue beyond 2025?
Legal experts predict acceleration as more institutional money enters the space and regulatory clarity remains elusive.
