Crypto-assets has transformed the financial landscape, and Dynamis LLP has been at the forefront of both civil and criminal crypto litigation. While we practice nationwide, we provide specialized representation to clients facing cryptocurrency-related litigation and enforcement actions, particularly in Boston and New York, our hometowns and two critical hubs for financial innovation and regulatory oversight.

Common Types of Crypto Litigation

Securities Litigation and Regulatory Enforcement

The U.S. Securities and Exchange Commission (SEC), Department of Justice and other regulatory bodies actively pursue actions against entities involved in cryptocurrency offerings, particularly initial coin offerings (ICOs) and token sales that regulators deem securities offerings. Investors and entrepreneurs alike face substantial legal risk related to compliance, disclosure, and registration requirements.

Dynamis LLP has extensive experience handling complex securities litigation and enforcement actions, guiding clients through investigations and crushing adversaries in court when necessary.

Fraud and Misrepresentation Claims

Fraudulent schemes such as Ponzi-like structures and market manipulation allegations are frequent in cryptocurrency disputes. Victims of cryptocurrency fraud often seek recourse through civil litigation. Similarly, accused parties require robust defense strategies to address claims effectively.

Our firm specializes in unraveling fraud allegations, building strong cases by meticulously examining transaction records, communications, and blockchain evidence.

Contractual Disputes

As cryptocurrency transactions increasingly underpin significant business deals, breaches of smart contracts or disputes regarding token issuance and partnership agreements are growing. Our legal team has substantial experience navigating these novel contractual issues, ensuring our clients' rights are effectively protected and enforced.

Intellectual Property and Trade Secrets

Blockchain and cryptocurrency enterprises frequently encounter disputes over intellectual property rights. Companies may face litigation involving proprietary blockchain technology, software, or brand protection issues.

Dynamis LLP advises clients on intellectual property litigation, leveraging a deep understanding of both blockchain technology and intellectual property law.

Recent Crypto-Related Litigation Examples in New York and Boston

New York (2022–2024)

1. United States v. Sam Bankman-Fried – New York (SDNY), 2022 (filed), criminal: The founder of crypto exchange FTX was indicted in 2022 for orchestrating a massive fraud that misappropriated billions in customer funds. He was convicted in 2023 on multiple fraud and conspiracy charges and sentenced in 2024 to 25 years in prisonjustice.gov. This case (brought by the DOJ in SDNY) is one of the highest-profile crypto fraud prosecutions, involving over $8 billion stolen through FTX and its affiliate Alameda Researchjustice.gov.

2. SEC v. Coinbase, Inc. – New York (SDNY), 2023 (filed), civil: In June 2023, the U.S. Securities and Exchange Commission (SEC) sued Coinbase in the Southern District of New York, alleging the company operated its crypto trading platform as an unregistered securities exchange, broker, and clearing agency. The SEC’s complaint also charged Coinbase for offering unregistered securities through its staking rewards program. This civil enforcement case was subsequently withdrawn by the Trump administration.

3. NYAG v. KuCoin – New York (NY County Supreme Court), 2023, civil: In 2023, New York’s Attorney General Letitia James sued the Seychelles-based crypto exchange KuCoin for operating illegally in New York without registering. Notably, the NYAG alleged that Ethereum (ETH) is a security in this case. KuCoin ultimately agreed to a $22.5 million settlement in late 2023, which included refunding ~150,000 New York investors and barring KuCoin from operating in the state.

4. NYAG v. Gemini Trust Co., Genesis Global Capital & Digital Currency Group – New York (NY Supreme Court), 2023 (filed), civil: In October 2023, the New York AG filed a sweeping civil fraud lawsuit against crypto exchange Gemini, its lending partner Genesis, and parent company DCG. The suit claims they defrauded over 230,000 investors out of more than $1 billion through the Gemini Earn program by misrepresenting it as a low-risk investment despite knowing Genesis was financially unstable. The AG alleges the firms concealed Genesis’s massive losses (including a $1.1 billion hole) and misled Earn program users, violating New York’s securities laws.

5. NYAG v. Alex Mashinsky (Celsius Network) – New York (NY Supreme Court), 2023 (filed), civil: In January 2023, NY Attorney General Letitia James sued Alex Mashinsky, the former CEO of Celsius Network, for defrauding crypto investors. The civil complaint alleges Mashinsky touted Celsius as a safe, high-yield platform (promising up to 17% interest) while concealing the company’s mounting losses and precarious financial health. The NYAG seeks to permanently bar Mashinsky from doing business in New York and to obtain damages, accusing him of violating the Martin Act (New York’s securities fraud law). (Notably, this state action paralleled federal fraud charges brought against Mashinsky by the DOJ later in 2023.)

Boston / Massachusetts (2022–2024)

1. United States v. Randall Crater (My Big Coin) – Boston (D. Mass), 2021–2023, criminal: Randall Crater, founder of the fraudulent crypto company My Big Coin, was convicted in federal court in Boston of defrauding investors out of ~$6 million. Between 2014–2017, he lied that “My Big Coin” was a gold-backed cryptocurrency and had partnerships with MasterCard, none of which was true. In 2023, Crater was sentenced to 100 months (8+ years) in prison and ordered to forfeit $7.7 million.

2. United States v. Trung Nguyen – Boston (D. Mass), 2023 (filed), criminal: In May 2023, a federal grand jury in Boston indicted Trung Nguyen, a Massachusetts man, for running an unlicensed cash-to-crypto transfer business. Over several years, he converted more than $1 million in cash to Bitcoin through “no questions asked” ATMs and transactions, including funds from scammers and a drug trafficker. Nguyen was convicted at trial in Nov 2024 of operating an unlicensed money transmitting business and money laundering.

3. Mass. AG v. CreditCoin.CC (Pig-Butchering Scam) – Boston (Mass. Superior Court), 2023, civil: In August 2023, the Massachusetts Attorney General sued a Chinese crypto company operating as CreditCoin.CC for running a “pig-butchering” investment scam targeting Massachusetts residents. CreditCoin.CC impersonated a legitimate crypto project (“CreditCoin”) and lured victims via false promises of an upcoming ICO and exaggerated investment returns. After victims’ accounts showed fake profits, the scammers demanded a “security fee” to withdraw funds – then disappeared with the money. The Mass. AG’s civil complaint (under consumer protection law) seeks to halt the scheme and recover losses for defrauded investors.

4. “Operation Crypto Wash Trading” (Multiple cases) – Boston (D. Mass), 2024, criminal: In October 2024, federal prosecutors in Boston unsealed charges against 18 individuals and entities in a coordinated crackdown on crypto market manipulation. This first-of-its-kind operation charged the leaders of several crypto companies (e.g. token issuer Saitama) and alleged “market maker” firms (like Gotbit and others) with running alleged pump-and-dump schemes. According to charging documents, the crypto companies made false claims about their tokens and engaged in extensive wash trading to fake market activity – artificially pumping prices before selling off tokens at a profit. There are many flaws with this prosecution and we’ll see how things eventually shake out; however, several defendants were arrested in the U.S. and abroad, and over $25 million in crypto was seized.

5. Mass. Securities Division (Galvin) v. U.S. Data Mining Group – Boston/MA, 2022, civil: In March 2022, Massachusetts securities regulators (Secretary of State William Galvin’s office) fined Florida-based U.S. Data Mining Group $1 million for selling fraudulent, unregistered crypto investments to Massachusetts residents.The company had raised about $4 million from local investors to fund Bitcoin mining operations, but failed to disclose that several promoters were “bad actors” previously sanctioned for securities fraud. Under a consent order with the state, U.S. Data Mining agreed to the $1M fine and to offer refunds to Massachusetts investors, without admitting wrongdoing.

How Dynamis LLP Can Help

Our attorneys bring comprehensive knowledge of both blockchain technology and regulatory frameworks, equipping us to handle complex crypto litigation effectively. Our services include:

• Litigation Defense and Enforcement: We defend clients vigorously in court and regulatory investigations, ensuring their interests and reputations remain protected.

• Compliance and Advisory Services: We proactively advise businesses on regulatory compliance to minimize litigation risks, providing clarity and strategic foresight.

• Asset Recovery and Fraud Litigation: We represent investors seeking to recover stolen or misappropriated cryptocurrency, using advanced blockchain analysis tools to trace and recover digital assets.

• Contractual and Intellectual Property Litigation: We handle complex disputes involving smart contracts, token agreements, and intellectual property rights, always prioritizing pragmatic and strategic solutions.

Why Choose Dynamis LLP?

Choosing Dynamis LLP means partnering with seasoned litigators deeply familiar with crypto litigation nuances. Our firm combines technological fluency with litigation expertise, making us uniquely effective advocates. We focus intensely on client goals, offering personalized strategies and clear, honest communication.

Our experience in Boston and New York’s sophisticated legal environments ensures we deliver expert guidance through complex regulatory landscapes, helping clients navigate litigation successfully and efficiently.

Contact Dynamis LLP

If you are facing crypto litigation or regulatory scrutiny in Boston, New York, Miami or beyond, Dynamis LLP is prepared to guide clients through every stage of the process with unmatched clarity and determination.

Contact us today for a consultation to discuss how we can support your legal needs and safeguard your business and reputation.