As per a reportdevelopedby ‘Lex Machina,’ a legal analytics firm stating that last year,the amountof cases mentioning bitcoin, digital currency or blockchain amountedto onlyfew,butwithin the1stand thesecond quarters of this year, the figure hasmultiplied by more than three times.
Of all the cases thatarefiledthus far tillin this year, the U.S. Securities and Exchange Commission wasto blame for arounda 3rd,perthe National Law Journal. This coincided withthe presentchairman of the SEC, Jay Clayton,statingasuppressiononthe sector. Clayton wasnominativeto the position inJanuarylast yearthoughhe was formally inductedfewmonths later.
The surgewithin therangeof caseslooksto haveconjointlycoincided withthe breakdownwithin the price of bitcoin andother altcoins from their record highs. Specifically,there have beensolelyseven caseswith reference tobitcoin, blockchain or cryptocurrencywithin thefourth quarter of last yearhowever thismorethan tripledduring thisyear’s first quarter.
“The1sttwoquarters of 2018 sawa bigrisewithin therangeof securities caseswith reference to cryptocurrency or Bitcoin,” the legal analytics firm wrotein an exceedinglystatement. “Using Legal Analytics’ keyword searchpracticality, Lex Machina discovered case filingswith reference tothisrisingspacesurged from 7 cases inQ42017 to22cases in Q1 2018.”
Among the high-profilecompanieswithin thecryptoecosystem, Ripple Labs and Bitconnectareamongthe businessesfacing lawsuitswithin theUnited States. Recently, Ripple got a reprieve inone amongstthe lawsuitsonce it managedto achievea settlement with blockchaintechnologicalfirm R3.
The dispute betweenthe twocompaniescameoncethe severance of a partnership dealthathad allegedly stipulated that R3 would havethe right to accumulateXRP tokens totaling upto 5billion at aworthof US $0.0085 USD per unituntilthe endof next year. Atthe startof the year,when theXRP tokens weretradingat nearly US $4 USD per unit,the total worthof the legal dispute was approximated to beon the point ofaround US $20 Bln.