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Litigation Tracker
An overview of major litigation cases in crypto. Main page includes a general list with available docket links and press releases.
Although this page is frequently updated and contains what the authors believe are most of the cases involving crypto in the designated sections, new actions are frequently filed. You should always conduct your own research and, as relevant, retain your own counsel before making any legal decisions.
The below color keys indicate the theories of liability advanced by the government in various types of proceedings. The major theories (i.e., most commonly asserted) are listed, with some references to less common also listed.
SEC
CFTC
DOJ
🟥 = Fraud (F)
- Exchange Act § 10(b) (15 USC § 78j) & SEC Rule 10b-5 (17 CFR § 240.10b-5), and/or Securities Act § 17(a) (15 USC § 77q), or local equivalent;
🟦 = Market Manipulation (MM)
🟧 = Initial Coin Offering (ICO) / Unregistered Sale (US)
🟩 = Anti-Touting (AT)
🟪 = Control Person / Aiding and Abetting (CP)
🟫 = Unregistered Broker or Dealer (UBD)
🟨 = Unregistered Exchange / Clearinghouse (UEC)
- Unregistered - Exchange - Exchange Act § 5 (15 USC § 78e)
- Unregistered Clearinghouse - Exchange Act § 17A(b) (15 USC § 78q-1(b))
⭕️ = Other:
- Petition to compel subpoena responses.
- Deficiencies in attempted registration
- Revocation of registered securities
- Unregistered digital asset security exchange
- Purchase/sale of security-based swaps in violation of Securities Act § 5(e), and effecting transactions in those swaps outside of registered exchanges in violation of Exchange Act § 6(l).
🟥 = Fraud (F)
- Commodity fraud – deceptive device or contrivance; fraudulent scheme, CEA § 6(c)(1) (7 USC § 9(1)), Regulation 180.1(a) (17 CFR § 180.1(a)(1)-(3))
🟦 = Market Manipulation (MM)
- Use of a manipulative or deceptive device, CEA § 6(c)(1) (7 USC § 9(1)), Regulation 180.1(a) (17 CFR § 180.1(a)(1)-(3));
- Manipulation/attempted manipulation of a swap, CEA §§ 6(c)(3) and 9(a)(2) (7 USC §§ 9(3) and 13(a)(2)), Regulation 180.2 (17 CFR § 180.2)
🟧 = KYC/CIP/AML Failures (KYC) –
🟩 = Off-Exchange Transactions (OET)
- Conducting off-exchange futures transactions with non-eligible contract participants or eligible commercial entities, CEA § 4(a) (7 USC § 6(a))
- Illegal off-exchange commodity options, CEA § 4c(b) and Regulation 32.2 (7 USC § 6c(b), 17 CFR § 32.2)
🟪 = Control Person / Aiding and Abetting (CP)
- Failing to act in good faith or knowingly inducing acts constituting violations of the Act, CEA § 13(b) (7 U.S.C. § 13(b))
🟫 = Unregistered (UR)
- Failure to register as a commodity pool operator, CEA § 4m(1) (7 USC §§ 2(c)(2)(C)(iii)(I)(cc), 6m(1)); Regulation 5.3(a)(2)(i) (17 CFR § 5.3(a)(2)(i))
- Failure to register as an associated person of a commodity pool operator, 7 USC § 6k(2), Regulation 5.3(a)(2)(ii) (17 CFR § 5.3(a)(2)(ii));
- Failure to register a designated contract market or swap execution facility, CEA § 5h(a)(1) (7 USC § 7b-3(a)(1)), Regulation 37.3(a)(1) (17 CFR § 37.3)
⭕️ = Other
- Failure to enforce rules prohibiting wash trading and prearranged trading on a swap exchange facility, CEA § 5h(f)(2)(B) (7 USC § 7b-3(f)(1)), Regulation 37.203(a) (17 CFR § 37.203(a))
🟥 = Fraud (F)
🟦 = Money Laundering (ML)
- Failure to register/license a money services business (MSB), 18 USC § 1960, 31 CFR § 1010.100(ff), 31 CFR § 1022.380(a)(1)
- Failure of an MSB to comply with the Bank Secrecy Act (BSA), e.g., filing suspicious activity reports, 31 USC 5318(g) & 31 CFR § 1022.320(a), implementing an anti-money laundering program, 31 USC 5322 & 31 CFR § 1022.210, 31 CFR § 1026.210, 31 CFR § 1026.220, structuring transactions, 31 USC § 5324(c)
🟧 = Forfeiture (FF)
- Judicial forfeiture against assets resulting from money laundering, illegal monetary transactions, or operating an unregistered MSB, 18 USC § 981(a)(1)(A), computer hacking, 18 USC § 981(a)(1)(C), or against things of value furnished or intended to be furnished in exchange for drugs, 21 USC § 881(a)(6)
⭕️ = Other
- Obstruction of justice, 18 USC § 1503(a); Tampering with evidence/witnesses, 18 USC § 1512; destruction of investigative records, 18 USC § 1519;
- Motion to suppress
- Conspiracy to assist in sanctions evasion by violating the International Emergency Economic Powers Act, 50 USC § 1705(a), 31 CFR §§ 510.206(a), 510.212(b)
Each tab covers litigation by the federal government in court or an administrative proceeding, as applicable. The Challenges section involves cases where the plaintiff is suing the government, usually an administrative agency, for relief of some kind.
SEC
CFTC
DOJ/Criminal
Misc Fed/State
Challenges
Date / Type | Name / Court / Docket Link | Notes |
---|---|---|
2023.09.13
🟧 US | In re Stoner Cats 2, LLC, No. 11233 (Admin Proc. 2023.09.13)
– Press Release
– Dissenting Statement of Commissioners Peirce and Uyeda | Second case against NFT project, this one based on the creation of a series of short animated films featuring stars like Ashton Kutcher and Mila Kunis. The order concludes the Stoner Cats NFTs were sold as an unregistered securities offering, on the basis that the proceeds of the NFT sales would be used to develop the animated films and because there was an active secondary market in the NFTs before and after the release of the films. Settlement order required destroying all NFTs in company's possession, publishing notice of the order, and administering distribution plan for the $1 million civil penalty to harmed investors. |
2023.08.28
🟧 US
| In re Impact Theory, LLC, No. 11226 (Admin. Proc. 2023.08.28)
– Press Release
– Dissenting Statement of Commissioners Peirce and Uyeda | First of its kind enforcement action based on sale of NFTs as an unregistered securities offering as an investment contract under the Howey test based on promises of “tremendous value” to KeyNFT purchasers, raising $29 million. Impact Theory also stated that it would use the offering proceeds for “development,” “bringing on more team,” and “creating more projects.” Settled in exchange for: destruction of all KeyNFTs held by Impact Theory, removing royalties required by the smart contract, and disgorgement/penalties of over $5 million, among other remedies. |
2023.08.23
🟥 F
🟧 US | Fraudulent sale of “Blazar token” through an unregistered securities offering, an ICO, promising extraordinary investment returns, while falsely claiming that the token was registered with the SEC. DeSalvo rapidly sold his massive amount of Blazar tokens shortly after the ICO, crashing the market price of the token, and misappropriated investor funds for personal use. Related criminal action by DOJ brought simultaneously. | |
2023.07.31
🟥 F
🟧 US
| Fraudulent and unregistered sale of the following tokens by Richard Scheuler a/k/a Richard Heart: Hex, PulseChain (PLS), and PulseX (PLSX), marketed as the first high-yield "blockchain certificate of deposit," promoted as an investment designed to make people "rich" by offering returns as high as 38 percent. | |
2023.07.26
🟥 F
🟧 US
🟫 UBD | Action against proprietors of "DEBT Box" that fraudulently sold investors unregistered crypto asset securities in the form of "node licenses" to permit them to "mine" a number of different cryptocurrencies supposedly tied to real-world assets like gold and oil; in reality the tokens were simply created ERC-20 tokens and were never mined and not tied to real world assets. Defendants instead used investor funds for personal luxry expenses. | |
2023.07.21
🟧 ICO | Administrative settlement regarding ICO of QSP tokens in 2017, raising $28 million. Settlement includes $3.5 million in disgorgement, fines, and interest, and a requirement to burn all remaining QSP tokens in Quanstamp's treasury. | |
2023.07.13
🟥 F
🟧 US
| Parallel enforcement action with DOJ, CFTC, and FTC. Celsius along with former CEO Alexander Mashinsky, charged with securities fraud and unregistered sale of the company's crypto token, CEL. | |
2023.06.22
🟥 F
| Parallel enforcement action with DOJ and CFTC. Securities fraud charges over crypto-based scheme "Ichioka Ventures." Falsely promised 10% monthly returns, defrauding 100+ people of tens of millions. Used funds for luxury items, personal expenses, and repaying older investors. | |
2023.06.06
🟧 US
🟨 UEC
🟫 UBD
🟪 CP | Action against crypto exchange Coinbase and its holding company for operating as an unregistered securities broker, exchange, and clearing house, selling unregistered securities through its platform as well as its Prime and Wallet services. Alleges SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO tokens are securities, as well as Coinbase's staking program for XTZ, ATOM, ETH, ADA, and SOL. | |
2023.06.05
🟧 US
🟥 F
🟨 UEC
🟫 UBD
🟪 CP | Action against Binance crypto exchange (both foreign and U.S. entities) and its founder Changpeng Zhao (CZ) for unregistered sales of securities, running an unregistered securities exchange / broker dealer / clearing house, and committing fraud in so doing. Alleges BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI tokens are securities, as well as Binance's BNB Vault, Simple Earn, and Staking-as-a-Service programs. | |
2023.04.17 🟫 UBD
🟨 UEC
🟪 CP | SEC v. Bittrex, Inc., No. 2:23-cv-00580 (W.D. Wash. 2023.04.17)
– Press Release
– Settlement (2023.08.10) | Action against Bittrex crypto exchange and its founder for operating as an unregistered exchange, broker, and clearinghouse, and for the sale of unregistered securities in the form of crypto assets OMG, DASH, ALGO, TKN, NGC, IHT. Settled for $24 million in fines and penalties. |
2023.03.29
🟧 US
🟥 F
🟫 UBD
🟪 CP | Action against crypto exchange Beaxy for being an unregistered securities exchange and selling unregistered securities BXY and DRGN; misappropriation by one founder of at least $900,000; consent judgments entered against market makers on the exchange for market making in those tokens while being unregistered dealers. | |
2023.03.22
🟧 US
🟥 F
🟦 MM
🟩 AT | Action against Justin Sun and his companies for unregistered offer and sale of crypto asset securities Tronix (TRX) and BitTorrent (BTT); also includes charges for fraudulently manipulating the secondary market for TRX through extensive wash trading, and paying two celebrities — DeAndre Cortez Way (Soulja Boy) and Austin Mahone — to promote TRX without disclosing their compensation. | |
2023.03.22
🟩 AT | – In re Lindsay Dee Lohan, No. 3-21349
– In re Michele Anne Mason (a/k/a Kendra Lust), No. 3-21350
– In re Miles Parks McCollum (a/k/a Lil Yachty), No. 3-21351
– In re Jake Joseph Paul, No. 3-21347
– In re Shaffer Chimere Smith (a/k/a Ne-Yo), No. 3-21346
– In re Aliaune Damala Badara Akon Thiam (a/k/a Akon), No. 3-21348
(SEC Admin. Proc. 2023.03.22)
– Press Release | Six celebrities settled with the SEC related to their promotion of the TRX token without disclosing that they were paid promotions or the amounts of their compensation. |
2023.03.03
🟧 US
🟥 F
🟫 UBD | Fraudulent offering of unregistered securities that was purportedly a blockchain mining operation in a new token GREEN; no blockchain existed, no mining was performed. | |
2023.02.28
🟥 F | Fraud action against senior FTX executive for defrauding investors in FTX as well as its customers. | |
2023.02.23
🟥 F
⭕️ Other | Fraud action against crypto investment fund; $100 million raised, but money was used to make Ponzi-like payments and to fund lavish personal lifestyles. The SEC obtained an injunction and asset freeze. Complaint also alleges violations of the Advisers Act. | |
2023.02.17
🟩 AT | Settled anti-touting charges against former NBA player related to EMAX token. $1.4 million fine. | |
2023.02.16
🟥 F
🟧 US
🟪 CP
⭕️ Other | SEC v. Terraform Labs PTE Ltd., No. 1:23-cv-01346 (S.D.N.Y. 2023.02.16)
– Press Release
– Press Release (2023.04.13)
– Ruling on Motion to Dismiss (2023.07.31) | Fraudulent offer and sale of unregistered securities, including algorithmic stablecoin UST, related coin LUNA, and other assets. Unregistered offer of security-based swaps and effecting transactions in security-based swaps with ineligible participants. Control person liability against founder Do Kwon. |
2023.02.09
🟧 US | SEC v. Payward Ventures (d/b/a Kraken), No. 3:23-cv-00588 (N.D. Cal. 2023.02.09)
– Press Release
– Dissenting Statement of Hester Peirce | Unregistered sale of "staking-as-a-service" securities whereby Kraken would pool user deposited crypto assets for staking, in exchange for returns of up to 20% or more. $30 million settlement entered without proceeding past complaint. |
2023.01.20
🟥 F
🟦 MM
| Fraud and market manipulation of Mango Markets and its tokens in order to steal $116 million. | |
2023.01.19
🟧 US | Unregistered offer and sale of the Nexo Earn Interest Product, an interest-bearing crypto asset account. | |
2023.01.12
🟧 US | Unregistered sale of securities in the form of the Gemini Earn crypto asset lending program. | |
2023.01.04
🟥 F
🟧 US | Unregistered offering fraud of "CoinDeal," raising $45 million. | |
2022.12.21
🟥 F | SEC v. Ellison, No. 1:22-cv-10794 (S.D.N.Y. 2022.12.21)
– Press Release (2022.12.21)
– Press Release (2023.01.19) | Fraud in offer/sale/purchase of FTX stock by Caroline Ellison and Gary Wang; alleges in detail that FTT was a crypto asset security. Consent judgments entered by both defendants. |
2022.12.14
🟥 F
🟧 US | Fraudulent pyramid scheme, Forcount Trader Systems, targeting Spanish-speaking communities promising investors returns in a fake crypto asset trading and mining operation. | |
2022.12.13
🟥 F | SEC v. Bankman-Fried, No. 1:22-cv-10501-PKC (S.D.N.Y. 2022.12.13)
– Press Release (2022.12.13)
– Press Release (2023.01.19) | Fraud in offer/sale/purchase of FTX stock by Sam Bankman-Fried, founder of FTX, in part based on misleading statements re FTT token and risk strategy. |
2022.11.18
⭕️ Other | In re The Registration Statement of American CryptoFed DAO LLC, No. 3-21243 (SEC Admin. Proc. 2022.11.18)
– Press Release
– Order Denying Motion to Dismiss (2023.06.07) (with dissents) | Order instituting public hearings regarding alleged omissions and misstatements in attempt to register two crypto asset securities. |
2022.11.03
🟥 F
🟧 US
🟫 UBD | "Trade Coin Club" ponzi scheme that raised more than 82,000 bitcoin, but diverted assets for personal purposes. | |
2022.11.03
🟥 F
🟧 US | Fraudulent promotion of crypto asset trading program Arbitraging.co, which promised returns of up to 1% per day. Settled the same day it was filed for $207k disgorgement, officer-and-director bar. | |
2022.10.03
🟩 AT | Anti-touting re EMAX tokens. $1.26M penalty through settlement. | |
2022.09.30
🟥 F | Pump-and-dump re DIG tokens. | |
2022.09.28
🟥 F
🟦 MM
🟧 US
🟪 CP
🟫 UBD
| Fraudulent, unregistered sale of Hydro tokens, market manipulation re same. | |
2022.09.19
🟥 F
🟧 US
⭕️ Other | Fraudulent sale of crypto investment services and Ponzi scheme, instead diverting client funds for personal purposes and other business ventures. Additional charges include violations of the Advisers Act. | |
2022.09.19
🟧 US | Unregistered sale of SPRK tokens. | |
2022.09.19
🟩 AT | Anti-touting re SPRK tokens. Jurisdiction based on Ethereum validator concentration in United States. | |
2022.09.15
🟥 F | Fraud enforcement re investment of funds in digital assets. | |
2022.09.14
🟥 F
🟧 US | Fraud enforcement re unregistered crypto asset securities offering. | |
2022.08.16
🟧 ICO | Unregistered offering of Dragon coin | |
2022.08.09
🟧 ICO | Unregistered ICO related to an online identity attestation platform. | |
2022.08.01
🟥 F | Ponzi/fraud enforcement against founders of Forsage. | |
2022.07.21
🟥 F | Insider trading charges against former Coinbase employee based on 25 tokens, 9 of which — AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, KROM — are described as crypto asset securities. | |
2022.06.30
🟥 F | Founders of EmpiresX misappropriated $40m raised from investors. Related CFTC and DOJ actions. | |
2022.04.28
🟧 US | NASGO sold SNP tokens as unregistered securities | |
2022.04.27
🟥 F
🟧 US | fraudulent/unregistered sale of securities; parallel criminal actions against founders | |
2022.04.27
🟥 F
🟧 US | (founder of Block Bits Capital) | |
2022.04.07
🟥 F
🟧 US
🟪 CP | Fraudulent sales of investment in crypto "mining packages" promising daily returns of 1%, paid in bitcoin. Instead investors received "Capital Coin" which could only be used on a fake trading platform. | |
2022.03.08
🟧 ICO / US | Unregistered ICO re Ormeus token | |
2022.02.14
🟧 US | Unregistered sale of crypto lending product. $100M fine split between SEC and 32 states. | |
2022.01.18
🟥 F | Fraudulent sale of investment in Gold Hawgs Development Corp. for development of new cryptocurrency. Funds instead diverted for personal purposes. | |
2022.01.06
🟥 F
🟧 ICO | Fraudulent use of ICO sales of CMCT token. | |
2021.12.02
🟥 F
🟧 ICO / US | Unregistered and fraudulent ICOs re Denaro and Innovamine. | |
2021.11.18
🟥 F
🟧 US |