Crypto Under Fire: Class-Action Lawsuits on the Rise

The world of cryptocurrency is no stranger to controversy, and lately, it’s been facing a new kind of challenge: class-action lawsuits. As crypto adoption spreads globally, companies in the industry are increasingly finding themselves in the crosshairs of angry investors and customers. According to a recent report by Cornerstone Research, the number of class-action lawsuits against crypto firms in the first half of 2025 has nearly matched the total for all of last year.

A Shift in Enforcement Attitudes

Despite a significant shift in enforcement attitudes from US financial regulators, such as the Securities and Exchange Commission (SEC), under the Trump administration, investors are still holding crypto firms accountable for their actions. The SEC’s change in stance has not deterred investors from seeking justice, and crypto firms are facing class actions related to securities, consumer protection, and fraud.

Major Crypto Cases Making Headlines

Here are six major crypto cases that have made headlines in the first half of 2025:

Bakkt Accused of Violating Securities Law

American cryptocurrency exchange Bakkt is facing a class-action lawsuit alleging that the company made false or misleading statements and failed to disclose certain information. The plaintiffs claim that Bakkt violated US securities laws and lacked transparency around the loss of major clients, including Bank of America and Webull.

Coinbase Faces Multiple Class Actions

Coinbase, a major American crypto exchange, is facing several class actions in multiple states. One lawsuit alleges that the company failed to disclose that customer assets can be considered part of Coinbase’s bankruptcy estate, making retail customers unsecured creditors. Another lawsuit claims that Coinbase’s identity verification process violates biometric privacy law in the state of Illinois.

Strategy’s Bitcoin Strategy Under Scrutiny

Software company and Bitcoin investment vehicle Strategy, headed by Bitcoin maximalist Michael Saylor, has been hit with a class-action lawsuit. The lawsuit alleges that Strategy and its executives made false or misleading statements about the company’s Bitcoin-focused investment strategy and treasury operations.

LIBRA Coin Faces Investor Ire

LIBRA, a token project supported by Argentine President Javier Milei, is facing a class-action suit from disgruntled investors. The token’s value skyrocketed after its initial release, but then crashed, leaving investors with significant losses. The lawsuit alleges that the token launch was conducted in a “deceptive, manipulative, and fundamentally unfair” manner.

Pump.fun Memecoin Frenzy Faces Racketeering Claims

Memecoin launchpad Pump.fun is facing a class-action lawsuit alleging that it operated as a “front-facing slot machine cabinet” that got over $5.5 billion from users through memecoin schemes. The lawsuit includes claims of racketeering, fraud, and unjust enrichment.

Nike Faces “Rug Pull” Allegations

Global sports attire giant Nike is facing allegations of executing a “rug pull” when it shut down its non-fungible token (NFT) platform RTFKT. A group of RTFKT users claims that they suffered significant damages after Nike hyped its sneaker-themed NFTs, only to shut down the platform on which they were hosted.

The Long Road to Justice

Class-action lawsuits against crypto firms can have serious financial and reputational repercussions, but they can also take a very long time to conclude. For example, a lawsuit against Binance filed in 2020 is still ongoing, with the US Supreme Court recently denying a review of the case. Other cases, like those against celebrities who endorsed FTX, have also taken years to reach a settlement or conclusion.