Crypto Battles: When Lawsuits Double and Doubt Flourishes

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As the sun climbs high over the American frontier, the number of investor‐led lawsuits—those bitter suits over broken promises by crypto and artificial intelligence—already threatens to outshine the grievances of 2024. It’s a sobering reminder that even as technology races ahead, the shadow of litigation lingers like an old friend in the dusty town hall.

In a report as urgent as a wartime telegram, Cornerstone revealed that the twin specters of artificial intelligence and cryptocurrency have become the top complaints in the first half of 2025. With 12 AI-related filings and 6 crypto-related ones, they nuzzle close to last year’s total. And yet, amid this digital uproar, the overall number of securities class actions—those claims of loss by aggrieved shareholders—remains as steady as an old oak, with a mere 114 new suits this year compared to 115 in the latter half of 2024. 🤑

Despite the federal watchdogs—the Justice Department and the Securities and Exchange Commission—seeming to ease their grip under the current administration, aggrieved investors are still arming themselves with the sword of civil action against crypto enterprises. In these modern times, it appears that the courtroom remains the last bastion of hope for those whose pockets have been picked by false promises. 😒

The Troubled Frontier of Crypto Legal Battles

In the bygone days of 2024 there were but seven crypto-related class lawsuits. Now, with six already filed in these early days, the numbers are on course to eclipse last year’s total. It seems the digital gold rush has also spawned a gold rush for legal claims. Among these six filings, half were aimed squarely at the very issuers of cryptocurrency, while one was squarely aimed at a miner. And there were two more grievances leveled at those the report termed “cryptocurrency-adjacent” companies—those peddling mining rigs, tiptoeing into the crypto realm, or aligning themselves with crypto enterprises. It’s a tangled web indeed.

It appears that half of these crypto-related complaints were championed by the tenacious law firm Burwick Law. Notably, they launched complaints against Pump.fun and the shadowy figures behind the infamous LIBRA memecoin—a controversy that has spread like wildfire among investors. “Sometimes, the only way to get to the truth is to drag it into the courtroom,” quipped Max Burwick, the stalwart founder of Burwick Law, with a wry grin that hinted at the absurdity of these modern times. Meanwhile, the remaining filings found their champions in Pomerantz LLP (two filings) and a single suit filed by Glancy Prongay & Murray—a veritable David and Goliath matchup in the legal arena.

The Shadow of ‘AI-washing’

The report also noted that the dozen AI-related filings in the first half of the year were creeping ever closer to the 15 total from the previous year. Stanford law professor and former SEC Commissioner Joseph Grundfest observed that the driving forces behind these actions were not some mysterious force of nature, but rather the cold, hard reality of dollars at risk and the specter of AI. “ChatGPT might tell you that the surge in AI-related securities litigation is primarily driven by a phenomenon known as ‘AI washing’—where companies paint rosy pictures of their AI capabilities, sometimes bordering on outright deception, leading investors astray,” Grundfest elaborated. “When the truth finally comes to light, legal claims follow like the dust settling after a storm.” With a hint of dry humor, he concluded, “I have nothing else to add to this AI explanation of AI litigation.” 👀

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2025-07-31 10:06