Reuters Investigation — Cryptocurrency Exchanges: The New Front of the old West
October 2, 2017 | Back to News
Reuters — the world’s largest international multimedia news provider — recently published an in-depth investigative study focused on the unscrupulous world of cryptocurrency exchanges. As the article explains, the burgeoning world of digital currency is a tantalizing way for investors looking to ride the wave of popularity of online exchanges to reap tremendous profits in a realm largely beyond the reach of government regulators. However, that opportunity is fraught with tremendous risk; and many of these unregulated exchanges have been susceptible in recent years to fraud, software malfunctions, poor security measures, and outright theft.
According to the Reuters report (https://www.reuters.com/investigates/special-report/bitcoin-exchanges-risks/):
There have been at least three dozen heists of cryptocurrency exchanges since 2011; many of the hacked exchanges later shut down. More than 980,000 bitcoins have been stolen, which today would be worth about $4 billion. Few have been recovered. Burned investors have been left at the mercy of exchanges as to whether they will receive any compensation.
David Silver of Silver Miller — who has successfully prosecuted several cryptocurrency lawsuits on behalf of aggrieved investors and digital currency users, including a class action case against a shuttered U.S.-based exchange named Cryptsy and its founder, Paul Vernon — was cited in the Reuters study. “This is no different than bank robbers in the Old West,” David said. “Cryptocurrency is just a new front.”
If you are a cryptocurrency user and fear you are the victim of fraud or abuse at the hands of a cryptocurrency exchange, contact us to discuss your legal rights. We have successfully recovered multi-million dollar awards for our clients in a wide variety of investment fraud and cryptocurrency exchange cases throughout the country and abroad. As with all of our cases, if our clients do not recover some or all of their losses, we do not get paid a fee for our services.