There has been an increase in the rate of scam projects and fraudulent activities in the cryptocurrency space. Lots of investors have lost their funds due to the mischievous activities happening in the cryptocurrency industry. A report released by the FBI on the investigation of internet crime in 2021, shows that losses to cybercrime increased significantly in 2021 and were estimated to be $6.9 billion. The SafeMoon has its own share of class-action lawsuits over the alleged pump and dump scheme.
On May 3, the U.S. Securities and Exchange Commission gave an official announcement via its verified Twitter handle “Today we announced that we are bolstering the unit responsible for protecting investors in crypto markets from cyber-related threats, The newly renamed Crypto Assets and Cyber Unit (formerly known as Cyber Unit) in the Division of Enforcement will grow to 50 dedicated positions”. Hopefully, the Crypto Assets and Cyber Unit will continue to tackle the omnipresent cyber-related threats to the nation’s market, knowing that the U.S has the greatest capital markets because investors have faith in them.
According to Statista, the value of crypto lost to security threats grew over nine times between 2020 and 2021, with one incident in August 2021 accounting for 610 million U.S dollars stolen. The hacker claimed he did the hack for fun and handed back about half of the money- 342 million U.S dollars. At the time of writing this article, less than 24-hours ago, data shows that scammers have passed off bogus Yuga Lab’s Otherside NFT and stolen about $3.7 worth of NFTs. This calls for proper security measures to be put in place in the crypto space.
The Litigation Tracker
SafeMoon token is trading at $0.0004290 on an SFM/USDT trade crypto with Gate.io https://www.gate.io/ , a top 10 global cryptocurrency exchange platform. SafeMoon is down by 15.08% on a 24-hour trading volume. Could it be that the allegations against the leadership of the token are part of the reason this token price is down or is it due to the general cryptocurrency market force?
The SEC, CFTC and DOJ have seven cases either resolved or ongoing this year, with the litigation against husband-wife duo Ilya Lichtenstein and Heather Morgan being the highest-profile. The crypto litigation tracker is from the law firm, Morrison Cohen LLP and it gives details of more than 300 active and settled court cases since 2013.
Morrison Cohen is a premier New York law firm serving clients ranging from the largest and most sophisticated financial institutions.
Morrison Cohen is an international law firm with attorneys specializing in all areas of law including international arbitration, real estate, mergers & acquisitions, and business law. The company has a cryptocurrency litigation team and on Tuesday published The Morrison Cohen Cryptocurrency Litigation Tracker which contains any case development related to the U.S Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), the Department of Justice (DOJ) and class action/private litigation.
The tracker, which is a PDF document, contains about 17 crypto cases that were either brought before the court or resolved in 2022. The most notable of all is the ongoing husband-wife duo of DOJ v.llya Lichtenstein and Heather Morgan case charged with conspiracy to launder funds relating to the 119,756 Bitcoin Bitfinex hack in 2016. SafeMoon is getting more attention in the class-action/private arena lawsuit over the alleged pump and dump scheme. Should we expect more decline in the SafeMoon price due to this case?
Interesting Related Article: “What to Know About Investing in Cryptocurrency“