Cryptocurrency Litigation Tracker Launched By Law Firm Morrison Cohen

Announcements, Bitcoin, Blockchain and the Law, News | April 2, 2018 By:

New York-based law firm Morrison Cohen LLP has introduced a special tracker that aims to provide updates and information on all active legal proceedings in the United States involving cryptocurrency companies.

Called Moco Cryptocurrency Litigation Tracker, the tracker offers heightened transparency with regards to the legal affairs of crypto companies. It will maintain a running list of regulatory actions, private litigation, and regulatory pronouncements regarding cryptocurrency, initial coin offerings (ICO), and blockchain-related litigation.

The tracker seeks to serve as a clearinghouse for the industry to keep track of trends in order to know what the regulators and plaintiffs’ lawyers are thinking, both to prevent against future litigation and to develop defenses to current actions. The tracker will allow prospective investors to immediately determine whether or not a company is presently embroiled in any legal action. The service also provides links to all documents related to the listed cases, including final orders.

According to the tracker, there are currently 63 ongoing cases in the US. 27 of those are described as comprising “Summary Suspensions/Cease and Desist Orders,” 24 are described as “Class Action and Other Private Litigation,” and 18 cases are “Regulatory Litigation and Proceedings.”

One of the most recent and egregious charges is against defunct bitcoin ‎securities exchange BitFunder and its founder Jon E. Montroll. Last month, the US Securities and Exchange Commission (SEC) charged that BitFunder operated as an unregistered online securities exchange. The regulator also alleges that BitFunder and Montroll defrauded investors by misappropriating their bitcoins and failing to disclose a cyberattack on BitFunder’s system that resulted in the theft of more than 6,000 bitcoins.

Earlier this month, Valuepenguin, a consumer research group, published an analysis on complaints filed with the Consumer Financial Protection Bureau (CFPB) between June 1, 2017 and March 1, 2018. According to the study, after the prices of cryptocurrencies dropped in value this year, consumer complaints surged by 669 percent.

Out of the 2,271 consumer complaints they looked at, most were concerned with their money not being available at an expected time. The other two leading categories were related to transaction problems and fraud or scam complaints.