Crypto and AI Class Action Lawsuits Set to Nearly Double in 2025

Investor-led class-action lawsuits in the US related to cryptocurrency and artificial intelligence (AI) are rapidly increasing, nearing the total number filed in all of 2024 within just the first half of 2025. This trend was highlighted in a recent report by Cornerstone Research.

Surge in Crypto and AI-Related Lawsuits

According to Cornerstone Research's midyear assessment, AI and crypto are the leading themes in securities class-action complaints so far this year. The report noted 12 AI-related filings and six crypto-related filings in the first half of 2025, both figures approaching the total number of similar complaints filed throughout 2024. Despite this rise, the overall number of securities class actions filed by shareholders claiming losses has remained steady, with 114 new lawsuits in the first half of 2025 compared to 115 in the latter half of 2024. The persistence of crypto-related lawsuits indicates that investors continue to seek civil remedies against crypto companies, even as US regulatory enforcement efforts by agencies such as the Department of Justice and the Securities and Exchange Commission have scaled back under the current administration.

Crypto Class Actions Near 2024 Totals

In 2024, there were seven crypto-related class-action lawsuits filed. The six filed so far in 2025 suggest a significant increase that is likely to surpass last year's total. Of these six filings:

• Half targeted crypto issuers.
• One complaint was filed against a crypto miner.
• Two complaints were directed at "cryptocurrency-adjacent companies," including businesses selling mining equipment, attempting to enter the crypto space, or partnering with crypto firms.
Complaints involving Special Purpose Acquisition Companies (SPACs), which facilitate taking companies public, are also on the rise. Half of the crypto-related complaints this year were filed by Burwick Law. Notable lawsuits include their complaint against Pump.fun and another involving the controversial LIBRA memecoin. Max Burwick, founder of Burwick Law, emphasized that civil actions often provide crucial accountability when other legal remedies lag behind. Other filings were led by Pomerantz LLP and Glancy Prongay & Murray.

AI-Related Lawsuits Driven by "AI-Washing"

The report also highlighted a surge in AI-related securities litigation, with 12 filings in the first half of 2025 nearing the 15 total filed last year. Stanford law professor and former SEC Commissioner Joseph Grundfest explained that this rise is primarily due to "AI washing," where companies exaggerate or misrepresent their AI capabilities to investors and the public. When the truth emerges and investors suffer losses, legal claims often follow.

"ChatGPT explains the increase in AI-related securities litigation as ‘primarily driven by the phenomenon known as ‘AI washing’ — where companies exaggerate, misrepresent, or falsify the extent or significance of their AI capabilities to investors and the public. This often results in legal claims when the truth is revealed and investors suffer losses," Grundfest said.

"I have nothing else to add to this AI explanation of AI litigation," he added.

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For more insights on crypto legal trends and AI litigation, stay tuned to Cointelegraph.

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Source: Originally published at Cointelegraph on Thu, 31 Jul 2025.

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Frequently Asked Questions (FAQ)

Lawsuit Trends

Q: What is the primary reason for the increase in AI-related lawsuits? A: The primary driver is "AI washing," where companies overstate their AI capabilities to investors, leading to legal action when these claims are found to be false and investors suffer losses. Q: What types of companies are being targeted in crypto-related lawsuits? A: Lawsuits are targeting crypto issuers, crypto miners, and companies that are "cryptocurrency-adjacent," such as those selling mining equipment or partnering with crypto firms. Q: What is the significance of the increase in crypto class action lawsuits despite scaled-back regulatory enforcement? A: It indicates that investors are actively pursuing civil remedies and seeking accountability from crypto companies through legal channels, even when direct regulatory action may be less frequent. Q: How do civil actions provide accountability in the crypto and AI spaces? A: According to Max Burwick of Burwick Law, civil actions often provide crucial accountability when other legal or regulatory remedies are slow to emerge or lag behind the rapid pace of innovation.

Crypto Market AI's Take

The escalating number of class-action lawsuits in both the crypto and AI sectors highlights a critical period of scrutiny and accountability for these rapidly evolving industries. At Crypto Market AI, we recognize the importance of transparency and due diligence for investors navigating these complex markets. Our platform provides advanced AI-driven market analysis and tools designed to help users identify potential risks and opportunities. We believe that informed decision-making is key to mitigating the impacts of "AI-washing" and other deceptive practices, ensuring that investors can engage with these technologies responsibly.

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