Crypto Class-Action Lawsuits Surge in H1 2025, Hitting Major Firms
Crypto class-action lawsuits in the first half of 2025 have nearly matched last year’s total. Major defendants include Bakkt, Coinbase and Michael Saylor’s bitcoin investment vehicle. Bakkt faces securities-law violation claims and accusations of misleading revenue statements after losing Webull and Bank of America as clients. Coinbase is sued over undisclosed bankruptcy risks, alleged breaches of the Biometric Information Privacy Act and a May 2025 data breach that could cost up to $400 million. Strategy is accused of misrepresenting its bitcoin strategy following a $765 million BTC purchase. The Argentina-backed LIBRA token project faces fraud claims after a price collapse. Even niche players like the Pump.fun memecoin platform and Nike’s RTFKT NFT venture face RICO and rug-pull allegations respectively. These crypto class-action lawsuits highlight increasing legal and regulatory scrutiny. Traders should watch ongoing cases closely, as prolonged litigation and potential penalties could drive market volatility and impact token prices.
Bearish
The surge in crypto class-action lawsuits increases legal uncertainty and risk across major firms. This heightened scrutiny is likely to weigh on market sentiment, leading to short-term price pressure and volatility. In the long term, outcomes could enforce stricter compliance, but ongoing litigation timelines and potential settlements or penalties suggest a bearish outlook as traders may reduce exposure amid legal headwinds.