Bitcoin News Today: Crypto and AI Lawsuits Surge in H1 2025 Amid Rising Investor Litigation

Legal actions against cryptocurrency and artificial intelligence-related assets have seen a sharp rise in the first half of 2025, according to recent data. Six crypto-related and 12 AI-related class-action lawsuits were filed in the first six months of the year, nearly matching the total number of similar suits filed across all of 2024[1]. This increase highlights a growing trend of investor litigation targeting companies and platforms in the digital asset and AI sectors. Meanwhile, overall securities class-action filings have remained flat, with 114 cases in H1 2025 compared to 115 in H2 2024[3].

The rise in AI-related lawsuits is particularly striking. With 12 cases filed in H1 2025 alone, the annual total is expected to surpass the 15 AI-related lawsuits recorded in 2024[2]. These suits often hinge on allegations of “AI washing,” where companies are accused of overstating their AI capabilities to mislead investors. Former SEC Commissioner Joseph Grundfest noted that such claims are “primarily driven by ... misrepresentations or falsifications of the significance of AI technologies”[1].

In the crypto space, Burwick Law has filed half of the 2025 H1 crypto-related cases, including a notable lawsuit against Pump.fun and the LIBRA meme token. A January 2025 complaint alleges that Pump.fun, through its UK operator Baton Corporation, collaborated with influencers to promote unregistered security memecoins, generating approximately $500 million in fees[1]. Another case involves Solana token buyers suing Meteora and Kelsier Labs for allegedly inflating the price of the $M3M3 token through misleading marketing, resulting in claimed losses of $69 million[1].

The surge in litigation reflects a broader shift in investor behavior and regulatory scrutiny. As the U.S. federal agencies have softened enforcement in the crypto space under the new administration, investors are increasingly turning to legal channels to hold platforms and companies accountable[1]. This trend suggests that traditional enforcement mechanisms are not keeping pace with the rapid evolution of digital assets and AI-driven financial products.

Risk metrics have also spiked. The “Disclosure Dollar Loss” index rose by 56% to $403 billion in H1 2025, and the “Maximum Dollar Loss” index reached $1.85 trillion[3]. These figures indicate that while the number of lawsuits has not grown significantly, the financial stakes involved have increased substantially.

Regulatory developments have also continued to shape the landscape. The U.S. White House released a comprehensive report on July 30 outlining new recommendations to promote cryptocurrency markets[4], while the EU and Germany have introduced regulatory frameworks such as DAC 8 and DORA to enhance compliance and oversight[5]. These efforts signal a global push to establish clearer legal boundaries for crypto and AI in finance.

Despite legal challenges, crypto markets have continued to perform well. Bitcoin reached new all-time highs in mid-July 2025, supported by favorable macroeconomic conditions and increased institutional interest[6]. Meanwhile, some crypto mining firms have seen valuation shifts as AI-driven infrastructure gains validation, though gains have not been uniform across the sector[6].

Together, these developments underscore 2025 as a pivotal year for crypto and AI litigation. As the legal system adapts to the digital transformation of finance, investors, companies, and regulators must navigate an increasingly complex and high-stakes environment. The coming months will likely reveal further insights into how this evolving legal landscape will shape the future of digital assets and AI in the financial sector.

Source:

[1] Crypto In The Courtroom—2025 Class Actions Could Hit ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1003024-20250801)

[2] Crypto Class Actions on Pace to Nearly Double in 2025 (https://www.ainvest.com/news/crypto-class-actions-pace-double-2025-2507-84)

[3] Crypto and AI Class-Action Lawsuits Surge in 2025, Set to ... (https://www.bitcoininsider.org/article/281101/crypto-and-ai-class-action-lawsuits-surge-2025-set-eclipse-2024-totals)

[4] White House releases new crypto recommendations in ... (https://subscriber.politicopro.com/article/2025/07/white-house-to-release-new-crypto-recommendations-in-landmark-report-00484253)

[5] EU and Germany Advance Crypto and Finance Regulation (https://natlawreview.com/article/investment-management-update-germany-july-2025)

[6] VanEck Mid-July 2025 Bitcoin ChainCheck (https://seekingalpha.com/article/4806030-vaneck-mid-july-2025-bitcoin-chaincheck)