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The Argentine president's support for the Taiwanese currency LIBRA is facing class action lawsuits, and the risk of memecoin is exploding!
industry7 months before
Summary：With the global expansion of the cryptocurrency industry, various class action lawsuits have become frequent. From exchange giants Coinbase and Bakkt to the LIBRA project supported by the Argentinian president, legal risks are becoming a new pain point in the industry. In the first half of 2025, the number of lawsuits related to securities, fraud, privacy, and consumer protection in the crypto field has approached the total number of the whole year last year. Whether it is identity data leakage, false statements, or user rights protection caused by the closure of NFT platforms, legal proceedings are profoundly affecting the trust foundation and development prospects of crypto assets. #CryptoLaws#Coinbase#DataBreach#LIBRAToken#NFTDisputes
The crypto industry is facing a "legal winter" as a wave of class action lawsuits spreads.
According to financial consulting firm Cornerstone Research [Source], the number of class-action lawsuits filed against the crypto industry for securities issues in the first half of 2025 alone will almost match the total for the entire year of 2024. In the United States, where regulations are increasingly relaxed, crypto investors are proactively pursuing legal action, reflecting a deep anxiety about the market's trust system.
Coinbase: From information disclosure to data leaks, multiple lawsuits hit
Coinbase, a US-listed crypto exchange giant, has recently been embroiled in multiple legal battles, encompassing asset ownership disputes, privacy compliance issues, and data security incidents. Shareholders accuse the platform of failing to clearly inform customers that their assets could be liquidated in a bankruptcy scenario, exposing retail investors to a high risk of becoming unsecured creditors [Source: Guo v. Coinbase]. Coinbase is also facing a class action lawsuit alleging violations of the Illinois Biometric Information Privacy Act (BIPA) for its collection of user facial data. Plaintiffs allege the platform failed to provide clear destruction policies and data retention guidelines.
Even more worryingly, in May, Coinbase disclosed that its overseas support staff had been bribed by cybercriminals, resulting in the leakage of customer data and subsequent use in attacks. The company estimates that related remediation and compensation costs could reach $180 million to $400 million [Coinbase announcement, May 2025]. Investor Brady Nessler filed a class-action lawsuit based on this, emphasizing that the incident caused "significant losses" to shareholders, further exacerbating market doubts about the company's internal governance and user protection capabilities.
Bakkt, Strategy: Revenue Structure and Bitcoin Strategy Questioned
Bakkt is accused of exaggerating the diversity and stability of its crypto revenue. Data shows that 74% of its crypto revenue in 2023-2024 came from Webull, and that the loss of this client could result in a 73% drop in operating income [cited in the lawsuit].
Meanwhile, Strategy was sued by investors for touting the “expected profitability” of its Bitcoin investment strategy, only days after the company spent $764.9 million to purchase 7,390 BTC.
LIBRA, Pump.fun, and the cost of the memecoin bubble
Davis (left) and Milei (right) met in Buenos Aires
Argentine President Mille briefly championed the LIBRA token on social media, driving a surge in its price. However, the tweets were subsequently deleted after a rapid price drop, sparking a class-action lawsuit from investors [Burwick Law complaint]. The case even involves global jurisdiction, raising significant legal costs.
Another memecoin platform, Pump.fun, was accused of building a "front-loaded slot machine" structure and illegally collecting $5.5 billion in funds. It was involved in charges under the Racketeer Influenced and Corrupt Organizations Act (RICO), and the amount of compensation was unprecedented.
Nike NFT closure triggers platform trust crisis
Nike was collectively sued for $5 million by users for shutting down its RTFKT NFT platform, accusing it of providing "unregistered securities" and violating consumer protection laws in multiple states [Case source: Jagdeep Cheema et al. v. Nike].
When users find that virtual assets cannot be transferred or used any further, the NFT trust mechanism almost collapses.
Market reaction and investor focus
The recent spate of lawsuits has heightened investor concern about the crypto industry's legal compliance and platform transparency. While the overall market maintains long-term confidence in the development of blockchain and digital assets, short-term legal uncertainty and potential compensation risks have prompted some investors to adopt a cautious wait-and-see approach.
In the current environment, investors should pay greater attention to key details such as the platform's legal structure, data security mechanisms, and asset vesting clauses. Rationally assessing project risks and closely monitoring regulatory changes will help them maintain a prudent investment strategy and effectively hedge risks in a complex market.
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