Comprehensive Analysis of Emerging Legal Trends in Crypto and AI Sectors
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Increase in Cryptocurrency Legal Actions
In the early months of 2025, the United States witnessed a significant uptick in cryptocurrency-related class-action lawsuits, with six new cases already filed. This is a substantial rise compared to the seven cases recorded throughout 2024. Notably, half of these lawsuits target token issuers, while others involve entities connected to mining operations and companies engaged in selling or partnering in crypto-related hardware.
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Burwick Law, spearheaded by its founder Max Burwick, has filed three of these cases, highlighting the growing trend of private litigation as a mechanism for investors to hold companies accountable. Other notable law firms, including Pomerantz LLP and Glancy Prongay & Murray, have also played significant roles in initiating these legal proceedings.
The findings are based on a report by Cornerstone Research. The surge in legal actions reflects the broader trend of increasing scrutiny and accountability within the cryptocurrency sector, which continues to evolve rapidly.
Escalation of AI-Related Legal Cases
Simultaneously, artificial intelligence (AI)-related lawsuits in the U.S. are on the rise, with twelve cases filed in the first half of 2025 alone. This figure approaches the total of fifteen cases filed throughout the previous year. Joseph Grundfest, a law professor at Stanford, attributes this increase to what he calls “AI-washing,” where companies exaggerate their AI capabilities to attract investment, leading to investor backlash through civil claims when reality falls short and share prices drop.
Overall, the number of securities cases filed in the first half of 2025 was 114, nearly matching the 115 cases recorded in the latter half of 2024. This stability in total filings suggests that while certain sectors are experiencing heightened legal attention, the broader litigation landscape remains steady.
Impact of Regulatory Changes on Private Litigation
Despite a pullback from regulatory bodies like the U.S. Justice Department and the Securities and Exchange Commission during the Trump administration, private investors have continued to pursue legal action. This trend indicates that private litigation is becoming a standard approach for investors seeking recourse for financial losses.
The data suggests that the number of crypto-related lawsuits will surpass those filed in 2024 by the end of 2025, and AI-related filings are likely to meet or exceed last year’s figures. A select group of law firms, including Burwick Law, is leading these efforts in the cryptocurrency arena, while a diverse range of firms is actively engaging in AI-related cases.
Recommendations for Companies in Crypto and AI Industries
Companies operating within the cryptocurrency and AI sectors should exercise caution in how they communicate their technological capabilities. Overstated or misleading claims regarding blockchain integration or machine learning advancements can trigger civil lawsuits. Clear and transparent disclosures are essential for mitigating legal risks, as private lawsuits often fill regulatory gaps.
Legal specialists advise that maintaining straightforward and honest communications is the most effective strategy for companies to protect themselves from potential litigation.
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