Research: US Crypto Lawsuits Increase Over 40% In 2022, Reaching Record High

Key Points:

• In 2022, the number of crypto-related lawsuits increased by 42% compared to 2021, recording a record increase.
• Among them, lawsuits related to unregistered cryptocurrencies are the main category.

A new study of crypto lawsuits in the United States since 2018 shows signs of a record high of 42% by 2022. Most cases come from the US Securities and Exchange Commission (SEC).

Bitcoin.com reported that according to the latest research published by hedgewithcrypto.com, similar to the price cycle that cryptocurrencies go through, the number of crypto-related lawsuits filed in the United States annually also fluctuates.

The study notes that crypto lawsuits have increased by 40% from 2018 to 2022 but have fallen between highs. Of all the years, 2022 was the year with the highest number of lawsuits in the United States, with 41 cases.

About 19 of the 2022 crypto lawsuits came from the United States Securities and Exchange Commission (SEC). Over the years, cases related to unregistered securities and services have been the most common in the crypto industry, with a total of 53 lawsuits as of 2018. Initial coin offering fraud (ICO) accounted for 12 lawsuits as of 2018, while theft or fraud accounted for 10.

According to Google News, one prominent case in October saw the SEC charge celebrity superstar Kim Kardashian for promoting EthereumMax, which has more than 50,000 articles about the case.

Another major scandal occurred in December following the collapse of the FTX exchange. Former CEO Sam Bankman-Fried is currently out on $250 million bail while facing various charges that could lead to a maximum sentence of 115 years in prison (Bankman-Fried did not plead guilty). This developing story could become the most significant case in the history of crypto lawsuits and has garnered tremendous interest online, with commentators offering various opinions and conspiracy theories around the issue.

Over the past half-decade, the most common issue in crypto lawsuits filed by the SEC has involved unregistered crypto assets or services. Almost half of all cases are related to this type of crime.

This is because the SEC believes that “of the nearly 10,000 tokens on the market, the majority are securities,” meaning that they are subject to US securities laws (including regulation and registration of crypto assets). cryptocurrency) and as a result, the SEC considers most of the crypto industry to be operating illegally.

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