Some US investors have filed lawsuits to try to get back the money they lost when the prices of cryptocurrencies fell and one stablecoin failed. This essay will talk about how cryptocurrency lawsuits have been dealt with in the past and what investors can expect in the future.
Who is being sued?
People have sued the people who made cryptocurrencies, the exchanges that made it easy to buy and sell them in this manner, click the link https://bitcointrader2.com/, and the people who supported their use.
Kyle Roche is a lawyer who stands up for people who own bitcoins in court. He said that when it comes to cryptocurrencies, federal securities or commodities laws are often broken in the U.S.
No one can break these rules, and everything and everyone must be registered with the U.S. government. Kyle Roche is a lawyer who represents people in court who own bitcoins.
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A new lawsuit has been filed against the company that made Terra USD because its price has recently gone down.
A bitcoin investor went to court in Seoul on June 17 against the company and its CEO, Do Kwon. The investor said that the company did not register its digital assets as securities and that Kwon and the venture capital funds that helped Terra USD worked together to trick investors. The case was brought by the person who bought the digital money.
A spokesperson for Terraform Labs said that the claims were based on nothing real.
Ripple is being sued for selling securities to people in California without being registered to do so. The founders of the company made the XRP token.
Both problems have been tried to be solved, but no one has been able to.
A representative for the company said that Ripple doesn’t agree with the accusations and will fight back. Tether didn’t say anything when asked what he thought about what was going on.
People who lost money on bitcoin exchanges have also sued them in the past few months.
On June 13, investors sued Binance U.S. for making them think that TerraUSD was a safe investment when it wasn’t. Investors said in March that Coinbase sold 79 digital assets as securities without having a license to do so.
Both Binance and Coinbase said that the claims are not true.
Investors can also sue people who have said in public that bitcoins are a good idea. In a lawsuit that was filed in Los Angeles, it is said that Kim Kardashian and Floyd Mayweather Jr. took part in a “pump and dump” scheme with Bitcoin. Both Kardashian and Mayweather’s spokespeople did not answer questions about this topic.
Legal hurdles
Most of the lawsuits against exchanges in 2020 that said they caused an illegal rise in digital currencies were thrown out because they were filed too late or didn’t have enough to do with the United States.
Time shouldn’t be a problem for cases that happened more recently. But people who own bitcoins and want to sue foreign companies in a US court may find it hard.
When asked to say something, KuCoin did not say anything.
Investors who make claims based on rules for securities or commodities will have to show that their tokens meet the legal definition of securities or commodities. This could give these investors more trouble. Even though some courts have said that some cryptocurrencies meet the requirements, the question has still not been answered.
People with Bitcoin may find it harder to find exchanges than other people. A cryptocurrency exchange called Coinbase said in the lawsuit against the company that it wasn’t involved in the transactions at issue and that private litigants can’t force anyone to join.
Do any cryptocurrency holders win money in court?
Even if a deal is made, investors may have to wait a long time to get their money back, or they may get less than they put in.
In December 2018, Block. one agreed to pay $27.5 million to settle a lawsuit filed by token holders who said the company broke securities laws.
Court records show that more than 100 token owners filed claims for more than $75.7 million. Not every important person has agreed on a solution yet.
