Over the past five years, new information regarding cryptocurrency cases in the United States has come to light. According to a recent study by HedgewithCrypto, the number of crypto lawsuits rose by 46% in 2022.

105 Crypto-related Lawsuits Recorded From 2018 To 2022

Recently, the level of general interest in cryptocurrencies and crypto exchanges peaked in the early years of the crypto sector compared to other financial sectors. Consequently, how to regulate and legally oversee digital currencies is still a matter of debate.

Besides, the general public argues that many crimes committed using cryptocurrencies go unpunished. From 2018 to 2022, the SEC received 105 cryptocurrency-related lawsuits.

The year 2022 saw the largest number of claims, with 41, representing a 46% increase compared to previous years. This total encompasses 19 SEC filings and 22 class action securities lawsuits.

The latest lawsuit took place in December due to the FTX saga. Sam Bankman-Fried, the ex-CEO of the firm, is currently out on bail with a $250 million bond.

According to reports, he faces various allegations with a maximum potential sentence of 115 years in prison. In 2020, Bitcoin experienced a substantial increase in value.

Starting at $7,175 on January 1st, the value of Bitcoin rose to $28,985 by the end of the year, marking a gain of 300%. At the time, there was a significant rise in the number of crypto-related lawsuits filed compared to 2019.

Specifically, the number of cases filed in 2020 reached 34, the second-highest number of cryptocurrency lawsuits recorded since 2018.

Most Crypto Lawsuits Related To Registration And Crime

Notably, the number of lawsuits in 2022 increased by over 62% from 2021. Then, the SEC filed several complaints against high-profile individuals.

One of them is the late businessman John McAfee. SEC accused McAfee of failing to disclose payments he received while promoting a cryptocurrency product.

Although the use of cryptocurrencies has not reached the level of widespread adoption it had in 2021, 30 class action lawsuits were filed in 2018 in the United States. The SEC has initiated 16 of these claims.

Since 2018, unregistered crypto assets have been the most prevalent issue in SEC-filed cryptocurrency lawsuits. Nearly 50% of all cases were crypto-related criminal activities, making it the most frequent subject in crypto litigation.

One of the most prominent cases is the two-year lawsuit between the SEC and Ripple. The case has received significant public attention and has seen both parties digging it out in court.

The US SEC alleged that the blockchain company sold XRP tokens as securities without proper registration. On the other hand, Ripple claims the XRP tokens were not securities.