Enforceable Terms And Arbitration Provisions Important For Providers In Current Crypto Cyberthreat Environment

According to a recent Bloomberg Law article [subscription required], in the past year there has been a sharp decline in active civil suits against cryptocurrency exchanges, digital wallet, mobile phone providers and others involving claims related to crypto hacking incidents or cybertheft, due, in part, to increased security protocols and concerted electronic contracting legal strategies that have updated terms of service provisions and moved such cases to arbitration. In addition, the report suggests that providers have also reexamined user agreements to update limitations of liability provisions and class action waivers. These legal strategies remain important for providers, given the continuing threat of crypto theft, protocol exploitation and wallet hacks – according to a recent crypto crime report from Chainalysis, while the amount of funds stolen decreased by half from the previous year's numbers, the number of individual hacking incidents rose.