Crypto and AI-related lawsuits rise, nearing 2024 totals, as investor scrutiny intensifies.
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Crypto Class Actions Surge as AI Trends Drive Legal Scrutiny
In the rapidly evolving landscape of technology and finance, the number of class-action lawsuits involving cryptocurrency and artificial intelligence (AI) is set to nearly double by 2025. According to a recent report by Cornerstone Research, these legal actions are already approaching the total number filed in 2024, underscoring a significant uptick in investor-led litigation.
Rising Legal Actions in Crypto and AI
Related: SEC Lawsuits Subside Post Gensler's Resignation - Pantera Capital
The first half of 2025 has seen 12 AI-related and six crypto-related class-action filings, nearly matching last year’s totals. This surge highlights the increasing scrutiny investors are placing on these sectors, despite a relatively stable overall number of securities class actions. In the first six months of 2025, 114 new lawsuits were filed, compared to 115 in the latter half of 2024.
The report notes that while U.S. regulatory bodies, including the Justice Department and the Securities and Exchange Commission, have reduced their enforcement activities under President Donald Trump’s administration, private civil actions against crypto firms continue unabated. This trend is evident as investors seek accountability through the courts.
Related: Global Cryptocurrency Market Capitalization Surpasses $4 Trillion for the First Time
Crypto Lawsuits: A Closer Look
In 2024, there were seven crypto-related class-action lawsuits. The six filed so far in 2025 suggest a growing momentum. Notably, half of these cases target crypto issuers, with others directed at crypto miners and companies associated with the cryptocurrency ecosystem, such as mining rig sellers and those forming partnerships with crypto firms.
Burwick Law, a prominent firm in this domain, has been involved in half of these crypto-related complaints. Among their high-profile cases are lawsuits against Pump.fun and the controversial LIBRA memecoin. Max Burwick, the firm’s founder, emphasized the importance of civil actions in holding companies accountable when other remedies fall short.
AI-Related Legal Challenges
The increase in AI-related lawsuits is attributed to a phenomenon known as “AI-washing,” where companies exaggerate or misrepresent their AI capabilities to investors. This often leads to legal claims when the truth emerges, and investors incur losses. Stanford law professor and former SEC Commissioner Joseph Grundfest highlighted the significant financial risks involved in these cases, noting the substantial increase in AI-related litigation.
As the legal landscape evolves, these trends suggest a growing need for transparency and accountability in the rapidly advancing fields of cryptocurrency and AI. For more insights into the implications of these developments, visit PR Newswire.
Sophia is a pioneer in the world of Web3 and NFT ecosystems. With extensive experience in digital art and tokenomics, she breaks down the intricate relationships between creativity and blockchain technology. Her unique perspective bridges the gap between technology and culture.
