Crypto Class Actions Surge: Investor Lawsuits Set to Double in 2025
The cryptocurrency industry is facing a legal storm as crypto class actions surge in 2025, nearly doubling from the previous year. Investors are increasingly turning to lawsuits to hold companies accountable, signaling a shift in how disputes are being resolved in the digital asset space.
Why Are Crypto Class Actions Rising So Rapidly?
According to Cornerstone Research, six crypto-related lawsuits were filed in the first half of 2025—just one short of the total for all of 2024. This sharp increase highlights growing investor frustration and a slowdown in regulatory enforcement. Key factors driving this trend include:
- Slower SEC and DOJ enforcement under the current administration
- Investor losses due to misleading claims or project failures
- More institutional investors entering the crypto space
Who Are the Major Players in Cryptocurrency Lawsuits?
Burwick Law has emerged as a dominant force, filing half of the crypto class actions in 2025. Their high-profile cases include lawsuits against Pump.fun and the LIBRA memecoin. Other firms like Pomerantz LLP and Glancy Prongay & Murray are also expanding into crypto litigation.
How Does Crypto Litigation Compare to AI-Related Lawsuits?
While crypto class actions are rising, AI-related lawsuits are growing even faster—with 12 filed in H1 2025 versus 15 in all of 2024. Stanford’s Joseph Grundfest attributes this to “AI washing,” where companies exaggerate their AI capabilities to attract investment.
What Does This Mean for the Future of Crypto Regulation?
As public companies acquire more crypto (131,000 Bitcoin in Q2 2025 alone), the regulatory environment becomes more complex. Legal experts warn that disclosure disputes and compliance issues will likely lead to even more litigation.
Key Takeaways for Investors
With crypto class actions on pace to double in 2025, investors should:
- Conduct thorough due diligence before investing
- Monitor legal developments in the crypto space
- Be aware of their rights to participate in class actions
Frequently Asked Questions
What is a crypto class action lawsuit?
A crypto class action is a legal case where a group of investors collectively sue a cryptocurrency company, typically over alleged misconduct or misleading statements.
Why are crypto lawsuits increasing in 2025?
The rise stems from investor frustration with project failures, reduced regulatory enforcement, and more institutional money flowing into crypto.
Which law firms specialize in crypto class actions?
Burwick Law has been particularly active, along with Pomerantz LLP and Glancy Prongay & Murray.
Can individual investors join these lawsuits?
Yes, investors who suffered losses may be eligible to join as class members, often automatically if they meet certain criteria.
How do crypto lawsuits differ from traditional securities litigation?
Crypto cases often involve novel legal questions about whether tokens qualify as securities and what disclosures were required.
