Crypto and AI class-action lawsuits surge 100% in 2025 first half

Investor-led class-action lawsuits targeting companies in the cryptocurrency and artificial intelligence sectors have surged in 2025, with 114 cases filed in the first six months alone—nearly matching the 115 cases filed in the second half of 2024 [1]. This sharp rise highlights a growing trend of legal scrutiny and investor dissatisfaction in two of the fastest-evolving sectors of the financial and technology landscape.

According to a report from Cornerstone Research, the number of AI-related lawsuits has already reached 12 in 2025, compared to 15 for the entire previous year. Meanwhile, crypto-related lawsuits have climbed to six this year, approaching last year’s total of seven. These figures suggest a significant acceleration in legal action, even as overall U.S. securities class-action filings have remained relatively stable [1].

The surge in crypto litigation has continued despite a slowdown in federal regulatory enforcement, particularly under the current administration. Investors have increasingly turned to civil lawsuits to seek redress for alleged fraud, misrepresentation, or misconduct by crypto firms. Among the six crypto-related cases filed in 2025, three targeted crypto issuers, one focused on a mining firm, and two involved companies with crypto-related partnerships. High-profile targets include the creators of the controversial LIBRA memecoin and the platform Pump.fun, both of which faced lawsuits led by Burwick Law [1].

Legal firms specializing in securities litigation, including Pomerantz LLP and Glancy Prongay & Murray, are also increasingly engaging in digital asset cases, signaling a broader industry recognition of the risks and complexities associated with crypto investments. Max Burwick, founder of Burwick Law, emphasized the critical role of civil actions in holding firms accountable when regulatory frameworks lag behind technological innovation [1].

The rise in AI-related lawsuits is being driven by what legal experts are calling “AI-washing”—the practice of overpromising or misleading investors about a company’s AI capabilities. Many of the 12 AI lawsuits filed in 2025 allege misleading disclosures or exaggerated claims regarding AI integration, performance, or future potential. Stanford Law professor and former SEC Commissioner Joseph Grundfest noted that the phenomenon of AI-washing is a primary driver of the current surge in AI-related litigation [1].

As these legal challenges continue to mount, they reflect a broader shift in investor behavior toward holding companies in high-growth tech sectors accountable for transparency and ethical business practices. The complexity of AI and crypto-based business models, combined with the absence of clear regulatory guidelines, has created an environment where legal action is seen as a necessary tool for investor protection [1].

With litigation trends showing no signs of slowing, companies in these sectors may need to reassess their compliance strategies, governance structures, and investor communication practices to mitigate legal exposure and maintain trust in an increasingly litigious landscape [1].

Source: [1] Crypto and AI Class-Action Lawsuits Surge in 2025, Set to Eclipse 2024 Totals (https://thecoinrise.com/crypto-and-ai-class-action-lawsuits-surge-in-2025-set-to-eclipse-2024-totals/)