Explainer: Can crypto holders recoup losses in court?
— Investors, Cryptocurrency, Lawsuits, Holders, Losses, Explainer, Lawsuit, Exchanges, Recoup, Claims, Digital, Crypto, Court, Securities — 1 min read
Companies that created cryptocurrencies, exchanges that facilitated sale, and individuals who promoted them have all been sued. U.S. claims over cryptocurrency often involve alleged violations of federal securities or commodities laws, which prohibit fraud and manipulation. Investors are also suing celebrities who have publicly touted cryptocurrency. A lawsuit filed in Los Angeles claims Reality TV star Kim Kardashian and boxing legend Floyd Mayweather Jr. engaged in a cryptocurrency pump-and-dump. The SEC has reclaimed some funds for investors in a handful of digital assets through settlements, but investors may face long waits and still end up with less than they shelled out. Source