Morrison Cohen LLP, a law firm based in New York, has developed and launched a system that is capable of tracking ongoing litigations involving cryptocurrency companies. The system which is called, the “Moco Cryptocurrency Litigation Tracker” will provide a platform for people to obtain information pertaining to cases involving crypto companies in law courts throughout the United States.
The Vicious Cycle of Innovation and Litigation
It is expected that such a system will throw more light and improve the transparency of an industry that seems always to be mired in legal troubles and sundry other controversies.
From Coinbase to Bitfinex and even Ripple Labs, many crypto companies are embroiled in one legal tussle or another and sometimes these legal troubles can impact the market as a whole.
Further, the life cycle of companies in the market seems to follow the path of innovation and litigation in close order. The cryptocurrency market is known for being volatile and not having a defined regulatory framework.
As a result, compensation claims that devolve into legal battles seem to be inevitable as far as the market is concerned.
An In-depth Look at the Litigation Tracker
The Moco crypto litigation tracker is currently tracking 63 legal proceedings involving crypto companies in the United States.
To make the tracker easy to use for investors, the legal proceedings are arranged in chronological order, and the cases are sorted based on the class of litigation it belongs to.
There are also links embedded in the case filings which direct the user to documents, rulings, and court orders pertaining to the case in question. These can help an investor to quickly become acquainted with the legal situation of companies in which they hope to invest.
Of the 63 cases currently being followed by the crypto litigation tracker, 27 are classified as “Cease-and-Desist Orders,” while another 24 are classified as “Class Action Lawsuits.” A total of 18 cases are filed under “Regulatory Litigation.”
Apart from monitoring activities in the courts’ system, the firm wishes to also track crypto proceedings in regulatory bodies like the SEC, CFTC, the New York State Department of Financial Services, as well as the Financial Industry Regulatory Authority.
Also, the firm is committed to tracking pronouncements concerning the crypto market that are made by executive order.
Some High-Profile Legal Troubles Involving Crypto Companies
In February 2018, BTCManager reported that Jon Montroll, the founder of BitFunder, was arrested by the U.S. government through a joint investigative collaboration between the SEC and the FBI.
The SEC also filed a separate case against the company for defrauding its customers and operating without a license. Coinbase, one of the largest crypto exchange platforms in the world, has also had its own share of legal troubles.
After a court ruling ordered the company to hand over customer information to the IRS, the company was slammed with a class action lawsuit the launch of bitcoin cash on its platform.
Outside the courts’ system, there has also been a significant rise in complaints made to consumer protection groups.
According to a recent report released by Valuepenguin, a consumer research group, the number of consumer complaints filed against crypto companies to the United States Consumer Financial Protection Bureau (CFPB) has increased by 669 percent.
The majority of these complaints have been about traders unable to make withdrawals from these crypto trading platforms.