Bitcoin News Today: Class-Action Lawsuits Against Crypto Firms Surge in Early 2025

Class-action lawsuits against crypto firms have spiked in the first half of 2025, nearly matching the total number of such suits from the entire previous year, as major platforms face allegations of securities violations, privacy breaches, and deceptive business practices. These lawsuits, reported by COINOTAG, highlight a growing wave of legal scrutiny in the crypto sector, with firms like Bakkt, Coinbase, and others under intense regulatory and investor scrutiny[1].

Bakkt, a U.S.-based crypto exchange, is under a class-action lawsuit accusing it of violating U.S. securities laws by misleading investors and withholding key client information. According to the complaint, Bakkt allegedly failed to disclose the departure of major clients such as Bank of America and Webull, which together accounted for nearly 90% of its revenue in 2023 and 2024. The lawsuit argues that this misrepresentation led to significant investor losses[1].

Similarly, Coinbase, one of the largest U.S. crypto exchanges, faces multiple lawsuits. One suit claims the company did not inform customers that their assets could be considered part of a bankruptcy estate, potentially exposing them to unsecured creditor status. Additionally, Coinbase is being sued under Illinois’ Biometric Information Privacy Act (BIPA) for collecting and storing facial recognition data without adequate disclosure. A major data breach in May 2025, in which customer data was compromised through bribed support agents, has also triggered legal action. Remediation costs are estimated to range between $180 million and $400 million[1].

Strategy, a firm known for its Bitcoin-focused investment strategy led by Michael Saylor, is also facing legal challenges. A class-action lawsuit was filed shortly before the firm acquired 7,390 BTC valued at $764.9 million, alleging that the company made false or misleading statements regarding the profitability of its investment approach[1].

The surge in litigation extends beyond traditional crypto platforms. Pump.fun, a memecoin launchpad, is accused of running a fraudulent operation that generated over $5.5 billion through deceptive memecoin cycles. The lawsuit includes allegations of racketeering and unjust enrichment, with plaintiffs seeking rescission of all transactions and compensation[1].

Nike, too, has found itself in legal hot water. Its NFT platform, RTFKT, is accused of a "rug pull," with plaintiffs claiming the company offered unregistered securities through NFTs and violated consumer protection laws. The suit seeks $5 million in damages for investor losses[1].

The lengthy duration of these lawsuits is a common challenge. Legal proceedings often span years due to complex regulatory investigations, appeals, and overlapping claims. For example, a 2020 lawsuit against Binance alleging unregistered token sales only advanced after the U.S. Supreme Court declined to hear the case in early 2025. Similarly, FTX-related cases have taken years to resolve[1].

Class-action lawsuits are typically triggered by alleged misrepresentations, regulatory violations, data breaches, or unfair business practices. The resolution of such cases is often delayed by the multifaceted nature of crypto-related legal issues, affecting investor confidence and exposing the need for greater transparency and compliance in the industry[1].

Source: [1] Class-Action Lawsuits Against Crypto Firms Including Bitcoin-Focused Strategy Increase in Early 2025 (https://en.coinotag.com/class-action-lawsuits-against-crypto-firms-including-bitcoin-focused-strategy-increase-in-early-2025/)