In order to stay ahead of legal trends in rapidly evolving markets, WIT examines disputes across our primary areas of practice to identify trends and forecast potential challenges. Our latest analysis centers on the activities of cryptocurrency parent companies within U.S. federal district courts.
To maintain a competitive edge regarding litigation trends in dynamic markets, WIT scrutinizes disputes in our key practice areas to recognize patterns and predict new challenges. Our recent investigation highlights the activities of crypto parent companies in federal courts. By reviewing 308 cases filed from 2000 to 2025 across 50 districts and 25 parent companies, we aim to pinpoint which entities face the highest levels of exposure, their specific roles, and which claims are contributing to the docket.
We categorize exposure by segments and subsegments (such as exchanges, wallets, peer-to-peer payment applications, gateways, remittances, ATMs, mining hardware, and hardware wallets) and connect these profiles to frequently occurring case types, including class actions, consumer-protection claims, securities cases, contractual disputes, and select intellectual property matters. Now, let’s delve into the data.
Analysis of Crypto Litigation Over Time
Almost all filings occurred within the last seven years. Despite data covering 2000 to 2025, significant growth in litigation did not begin until 2018, when annual filings surged. From 2018 to 2022, filings escalated from single digits to the 40s. Between 2023 and 2025, there was a notable uptick, leading to 191 matters filed, accounting for over 60% of the total. This increase mirrors a developing enforcement environment fueled by rising consumer adoption, diversification among platforms, and heightened regulatory demands for disclosures, custody, and access. Consequently, most cases involve contemporary products and updated contracts, necessitating greater expertise concerning today’s systems rather than outdated ones.
Q: Where does litigation volume concentrate?
A: The majority of litigation is concentrated among a small group of platforms. Cash App (Block) leads with 104 cases, followed by Coinbase with 71, Kraken with 20, Gemini with 18, Ripple with 16, and BitPay with 14, collectively accounting for 243 of the 308 matters (79%). Cash App and Coinbase alone represent 175 filings (57%). The remaining 65 cases are scattered across 19 other companies, most with minimal filings. This concentration reveals where litigation pressures are escalating and indicates where legal counsel and experts are likely to be engaged repeatedly across similar product offerings.
Q: What roles do crypto parent companies play in these cases?
A: The vast majority of parent companies find themselves as defendants in 278 out of 308 cases overall. This trend is particularly pronounced among consumer-facing software platforms, especially those providing digital wallets, exchanges, or peer-to-peer payment apps. Notable examples like Cash App, Coinbase, Kraken, and Gemini often defend against claims related to onboarding processes, transaction disclosures, listing decisions, or security breaches. In contrast, hardware and mining firms such as Bitmain exhibit a more balanced distribution between plaintiff and defendant roles, with their cases focusing on protecting proprietary technology, enforcing distribution agreements, or defending against product liability issues.
Q: What segments face the highest litigation activity?
A: Most litigation falls within the software segment, comprising over 80% of all disputes. These cases often involve digital wallets, exchanges, and P2P payment platforms, which directly interact with consumers and face scrutiny regarding onboarding, disclosures, transaction transparency, and security events. The hardware segment accounts for about 16%, focusing on performance, branding, or distribution issues involving mining rigs, ATMs, and hardware wallets. While software-related disputes tend to lean towards consumer and securities claims, hardware disputes more frequently involve intellectual property, contractual matters, or product liability questions.
This article serves as a general guide on the subject matter. For tailored advice, please consult a specialist in your specific circumstances.
