In The Daily Journal, Amy Longo Discusses the Uptick in Litigation Surrounding Cryptocurrency Crash
Litigation & enforcement partner Amy Longo commented in The Daily Journal on the increase in litigation relating to the recent drop in cryptocurrency value. Given that cryptocurrency is a relatively new commodity, it is unclear whether traditional securities regulation and frameworks will apply in litigation. The value of crypto can fluctuate just as other securities might, but the recent, dramatic market crash has ushered in a flood of class actions.
“Lately there has been a great increase in private actions, and there you see parties making use of contract law, fiduciary duty, and traditional fraud statutes in very creative ways,” Amy explained. In regard to the question of damages for those who lost money because of the cryptocurrency crash, Amy noted, “the more cases get decided, the more questions will be answered…we will have the answer as the law matures.”