Crypto and AI Class-Action Lawsuits Surge 100% in 2025 First Half

Investor-led class-action lawsuits targeting companies in the cryptocurrency and artificial intelligence sectors have surged in 2025, with 114 cases filed in the first six months alone—nearly matching the 115 cases filed in the second half of 2024. This sharp rise highlights growing legal scrutiny and investor dissatisfaction in two of the fastest-evolving sectors of finance and technology. According to a report from Cornerstone Research, AI-related lawsuits have already reached 12 in 2025, compared to 15 for the entire previous year. Meanwhile, crypto-related lawsuits have climbed to six this year, approaching last year’s total of seven. These figures suggest a significant acceleration in legal action, even as overall U.S. securities class-action filings have remained relatively stable. The surge in crypto litigation continues despite a slowdown in federal regulatory enforcement, particularly under the current administration. Investors have increasingly turned to civil lawsuits seeking redress for alleged fraud, misrepresentation, or misconduct by crypto firms. Among the six crypto-related cases filed in 2025:

• Three targeted crypto issuers
• One focused on a mining firm
• Two involved companies with crypto-related partnerships
High-profile targets include the creators of the controversial LIBRA memecoin and the platform Pump.fun, both facing lawsuits led by Burwick Law. Legal firms specializing in securities litigation, such as Pomerantz LLP and Glancy Prongay & Murray, are increasingly engaging in digital asset cases. This signals broader industry recognition of the risks and complexities associated with crypto investments. Max Burwick, founder of Burwick Law, emphasized the critical role of civil actions in holding firms accountable when regulatory frameworks lag behind technological innovation. The rise in AI-related lawsuits is driven by what legal experts call “AI-washing”—the practice of overpromising or misleading investors about a company’s AI capabilities. Many of the 12 AI lawsuits filed in 2025 allege misleading disclosures or exaggerated claims regarding AI integration, performance, or future potential. Stanford Law professor and former SEC Commissioner Joseph Grundfest noted that AI-washing is a primary driver of the current surge in AI-related litigation. These legal challenges reflect a broader shift in investor behavior toward holding companies in high-growth tech sectors accountable for transparency and ethical business practices. The complexity of AI and crypto-based business models, combined with the absence of clear regulatory guidelines, has created an environment where legal action is seen as a necessary tool for investor protection. With litigation trends showing no signs of slowing, companies in these sectors may need to reassess their compliance strategies, governance structures, and investor communication practices to mitigate legal exposure and maintain trust in an increasingly litigious landscape.

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FAQ

What is the primary driver behind the surge in AI-related lawsuits?

The primary driver is "AI-washing," where companies allegedly overpromise or mislead investors about their AI capabilities through exaggerated claims or misleading disclosures.

What types of entities are being targeted in crypto-related lawsuits?

Crypto issuers, mining firms, and companies with crypto-related partnerships are among the targets of these lawsuits.

Why are investors turning to civil lawsuits in the crypto space?

Investors are increasingly using civil lawsuits to seek redress for alleged fraud, misrepresentation, or misconduct by crypto firms, particularly as regulatory frameworks lag behind technological innovation.

What role do specialized legal firms play in this trend?

Law firms specializing in securities litigation are increasingly involved in digital asset cases, indicating broader industry recognition of the risks and complexities in crypto investments.

What is the significance of the surge in these lawsuits compared to overall filings?

The surge in crypto and AI litigation is notable because it's happening while overall U.S. securities class-action filings have remained relatively stable, indicating sector-specific challenges.

Crypto Market AI's Take

The significant increase in class-action lawsuits within the crypto and AI sectors underscores a critical period of maturation and increased scrutiny for these rapidly evolving industries. As innovation outpaces clear regulatory guidance, legal challenges become a more prominent mechanism for investor protection and corporate accountability. For companies operating in these spaces, a proactive approach to transparency, robust compliance measures, and clear communication with investors are paramount. Our platform's focus on AI-driven market analysis and transparent operations aims to help navigate these complexities, providing users with the tools and insights needed to understand market dynamics and potential risks.

More to Read:

• AI Crypto Securities Class Actions Surge in 2025
• Understanding Crypto Market Trends
• The Importance of Compliance in Crypto

Source: Crypto and AI Class-Action Lawsuits Surge in 2025, Set to Eclipse 2024 Totals (July 2025)