The crypto market has changed a lot since 2017. In 2017, the bitcoin was at the height of about $20k, but now it’s floating around $6500. Further, the crypto market has lost approximately 80% since its all-time high in January.
And considering, the bearish market, numerous investors may have already regretted their decision to purchase cryptos regardless of whether they don’t have a full understanding of the risks included. As per a report by Lex Machina, a legal analytics organization, digital currency lawsuits have tripled in the initial two quarters of the year compared to the entire of 2017.
Cases Held By SEC:
Around 33% of the cases recorded in the US in 2018 are taken care by the US Securities and Exchange Commission. Also, this isn’t exactly surprising considering the declaration of the current chairman of the agency saying that it is going to have a crackdown on the division. When Clayton was nominated to the situation in January a year ago, things have started to pick up.
Another thing that is quite clear is that the way number of cases increased as the price of Bitcoin fell. For instance, there were only seven cases that have related to Bitcoin, cryptocurrency, or blockchain in the fourth quarter of a year ago when Bitcoin could hit close $20k level in mid-December. In any case, during the first quarter of the year, it has effectively multiplied.
As per report “The first two quarters of 2018 saw a significant rise in the number of securities cases relating to cryptocurrency or Bitcoin”. With the help of legal analytics, Lex Machina discovered case filings identifying with this growing area surged from seven cases in Q4 2017 to 22 cases in Q1 2018 Q1 and 23 cases in Q2″.
Ripple Labs is among the organizations that have been toward the end of high profile lawsuits. Furthermore, it might have contributed to the decision of the US Securities and Exchange Commission to exclude Ripple as a commodity.
Bitconnect is another organization that is on receiving the end of lawsuits. Bitconnect has been blamed for running a Ponzi conspire. One of the claims was reported in Kentucky.
The crypto market is currently battling. A couple of days back, Ethereum has lost 45% of its value in only a range of 30 days. The facts confirm that some crypto-related lawsuits today can be considered as a buyer’s regret. However, there are a lot of crypto projects that can be considered a scam. Organizations have set up warnings over the possibility that you are dealing with a scam. According to reports, 1 out of 5 ICOs can be considered a scam.