Cryptocurrency-Related Securities Lawsuits: A Litigation Filing Trend for the New Year?

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Dec 25, 2017

On December 25, 2017, the D&O Diary published an article on how even after the precipitous drop on Friday in the price of Bitcoin and other digital currencies, the developments during the past several months involving cryptocurrencies have to be one of the year’s top business stories.

Part of this year’s cryptocurrency story has to include the SEC’s increasingly active approach to policing digital currency trading, as well as the rising numbers of lawsuits filed against cryptocurrency sponsors. In recent weeks claimants have filed a number of cryptocurrency-related securities lawsuits.

Taken collectively, the lawsuits give the definite impression the skyrocketing prices of Bitcoin and other cryptocurrencies have attracted a lot of questionable activity. The questionable activity has in turn in many cases led to litigation. Even the downturn on Friday in the price of Bitcoin and other cryptocurrencies could generate further litigation, as investors who lose money on their investment may be motivated to pursue their litigation alternatives.

Signs are that cryptocurrency related litigation will be one of the early litigation filing trends and the sudden surge at year end of these kinds of lawsuits in all likelihood will continue.

Review the full article on the D&O Diary's website.

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