As per a report developed by ‘Lex Machina,’ a legal analytics firm stating that last year, the amount of cases mentioning bitcoin, digital currency or blockchain amounted to only few ,but within the 1st and the second quarters of this year, the figure has multiplied by more than three times.
Of all the cases that are filed thus far till in this year, the U.S. Securities and Exchange Commission was to blame for around a 3rd, per the National Law Journal. This coincided with the present chairman of the SEC, Jay Clayton, stating a suppression on the sector. Clayton was nominative to the position in January last year though he was formally inducted few months later.
The surge within the range of cases looks to have conjointly coincided with the breakdown within the price of bitcoin and other altcoins from their record highs. Specifically, there have been solely seven cases with reference to bitcoin, blockchain or cryptocurrency within the fourth quarter of last year however this more than tripled during this year’s first quarter.
“The 1st two quarters of 2018 saw a big rise within the range of securities cases with reference to cryptocurrency or Bitcoin,” the legal analytics firm wrote in an exceedingly statement. “Using Legal Analytics’ keyword search practicality, Lex Machina discovered case filings with reference to this rising space surged from 7 cases in Q4 2017 to 22 cases in Q1 2018.”
Among the high-profile companies within the crypto ecosystem, Ripple Labs and Bitconnect are among the businesses facing lawsuits within the United States. Recently, Ripple got a reprieve in one amongst the lawsuits once it managed to achieve a settlement with blockchain technological firm R3.
The dispute between the two companies came once the severance of a partnership deal that had allegedly stipulated that R3 would have the right to accumulate XRP tokens totaling up to 5 billion at a worth of US $0.0085 USD per unit until the end of next year. At the start of the year, when the XRP tokens were trading at nearly US $4 USD per unit, the total worth of the legal dispute was approximated to be on the point of around US $20 Bln.