CryptoLawyers.org To Investigate Major Crypto Exchanges, Here’s Why
The collapse of many crypto firms in 2022 increased regulatory attention on the industry. Some recent enforcement actions by regulators affected key activities such as issuance of stablecoin and strike servicesof which PaxonBinance and Kraken have been affected.
Coinbase has also faced a number of issues with the SEC due to compliance-related charges and a recent fight against regulatory guidelines affects the industry.
As the crypto community continues to grapple with these regulatory actions, top securities lawyers have launched yet another investigation into Coinbase, Robinhood and other exchanges on behalf of investors. The investigation centers on possible violations of federal and state laws and failure to provide adequate material risk disclosures to crypto investors.
A possible class action against top exchanges
CryptoLawyers.org is the law firm that carries out the investigation against the exchanges on behalf of their users. Two securities and investment fraud lawyers Tom Grady and his partner Guy Burns are leading the investigation to determine whether Coinbase, Robinhood and others did not comply with the established rules for the provision of crypto services.
Fox Business reported this latest development reveals Grady’s statement that these exchanges could face a class action lawsuit. Tom Grady also stated in the press release that they believe the exchanges have broken the laws governing their operations. As such, customers who lost money while trading on the platforms may be entitled to a refund.
The law firm contacts the clients of these top exchanges and others, and asks them to join the fight. Investors who lost funds by trading on these exchanges shall share their investment information for the attorneys to review and determine whether their claim meets the criteria to submit for the case.
What this survey means for the crypto industry
Tom Grady’s activities so far in securities law have made him a popular figure in the industry. The famous investment fraud attorney has always represented and helped retail investors who lost money to Wall Street firms get their money back.
When it comes to crypto, Grady believes that many crypto tokens are unregistered securities, and exchanges that offer them to customers are violating state and federal laws.
Tom Grady and his partner Guy Burns have been known for their success in securities and financial litigation for over 40 years. As such, this recent interest in digital assets is likely to cause a lot of dust for many firms.
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According to the Fox Business report, many class action lawsuits have yet to emerge in the industry as investors view digital assets as currencies, not securities. But with this potential lawsuit, digital asset firms could face more lawsuits as the debate over crypto classification continues to rage.
Featured image from Pixabay and chart from Tradingview.com
