Bitcoin News Today: Crypto Class-Action Lawsuits Surge 90% in 2025 Amid Legal Scrutiny

Class-action lawsuits targeting crypto firms have surged in 2025, with major players like Coinbase, Bakkt, and projects linked to high-profile figures facing legal challenges. A report by financial consulting firm Cornerstone indicates that the number of securities-related class-action suits against crypto companies in the first half of the year nearly matched the total for the entire previous year [1]. These lawsuits span areas including securities fraud, consumer protection, and data privacy, with several extending into high-profile political circles.

Bakkt, a U.S.-based cryptocurrency exchange, is facing a lawsuit led by plaintiff Guy Serge A. Franklin, who accuses the firm of misleading investors about client losses. The case claims the exchange failed to disclose the departure of major clients like Bank of America and Webull, which accounted for nearly 90% of its services revenue in 2023 and 2024. The plaintiffs argue this lack of transparency led to a “73% loss in top-line revenue” for the firm [1].

Coinbase, one of the largest U.S. crypto exchanges, is embroiled in multiple legal battles. A federal lawsuit from shareholder Wenduo Guo accuses the company of failing to disclose that customer assets could be considered part of its bankruptcy estate, potentially leaving investors as unsecured creditors [1]. Additional cases in Illinois claim that Coinbase violated the Biometric Information Privacy Act (BIPA) by collecting and retaining customer faceprints without proper disclosure [1]. These legal issues were compounded by a data breach in May, which led to at least six new lawsuits, including one from investor Brady Nessler, who claimed the incident caused “significant losses and damages” [1].

In mid-May, Strategy, a company co-founded by Bitcoin advocate Michael Saylor, faced a class-action lawsuit alleging misleading statements about the profitability of its Bitcoin-focused investment strategy [1]. This came just days after the firm acquired 7,390 BTC at an average price of $103,500 [1].

Meanwhile, the LIBRA token, backed by Argentine President Javier Milei, has become a focal point of controversy. The token initially saw a sharp rise in value after Milei’s endorsement, which was later deleted and denied [1]. A class-action lawsuit filed by Burwick Law accuses the project of conducting a “deceptive, manipulative and fundamentally unfair” token launch [1]. Kelsier Ventures, one of the companies involved in the project, has attempted to dismiss the case, citing jurisdictional concerns [1].

The Pump.fun memecoin platform also faces legal scrutiny, with a class-action lawsuit accusing it of operating a fraudulent system that resembles a “rigged slot machine” [1]. The complaint includes RICO claims and seeks the rescission of all transactions conducted on the platform [1]. Nike is also being sued over the closure of its NFT platform RTFKT. Users allege they were misled into investing in unregistered NFTs and are seeking $5 million in damages [1].

Despite the increasing number of lawsuits, legal proceedings in the crypto space can be protracted. A case filed in 2020 against Binance over unregistered tokens did not reach a conclusion until January 2025 [1]. Other lawsuits, such as those involving FTX endorsements, have also taken years to resolve.

The surge in legal actions reflects the growing scrutiny of the crypto industry and its actors, particularly in areas of transparency, security, and consumer protection. As enforcement attitudes shift, companies and investors alike are adjusting to a legal landscape that is becoming increasingly complex [1].

Source: [1] Crypto Class Action Suits Are Piling Up (https://cointelegraph.com/news/coinbase-milei-libra-crypto-class-action-suits-pile)