Cryptocurrencies Face Rise In Investor Class Actions

After a surge in popularity and an increased interest from regulators, virtual currencies — also known as cryptocurrencies — have entered into a new phase in their relatively short history, with an increase in class actions targeting the emerging assets.

The emergence of cryptocurrency class actions comes after the market witnessed a rapid rise in the number and value of initial coin offerings (ICOs) in 2017, which prompted financial regulatory agencies to ramp up their focus on virtual currencies correspondingly. Most notably, the Chairman of the Securities and Exchange Commission previously announced that cryptocurrencies may be subject to U.S. securities laws — an announcement that has done little to dampen the market's enthusiasm for cryptocurrencies — and has also secured several emergency freezes against fraudulent ICOs in recent months.