New York, the financial capital of the world, is also becoming the capital of blockchain litigation activity, according to a financial services law firm Murphy & McGonigle report.
Two Times More Blockchain Cases Than Any Other Venue
Cryptocurrencies and blockchain technology are increasingly attracting the attention of large law firms all over the world. In the U.S., since 2018, Murphy & McGonigle has been maintaining a Blockchain Litigation Database, which records the number of incidences of litigation involving the blockchain sector.
Specifically, the database captures cases involving Bitcoin and other cryptocurrencies, blockchain-centered companies, mining companies, crypto-investment platforms, exchanges, Initial Coin Offer (ICO) issuers, and consultants.
Upon analyzing and interpreting these data, on January 22, 2020, Murphy & McGonigle released the second annual Blockchain Litigation Year in Review Report. The report identifies the 2019 top five trends related to litigations involving the crypto space in the U.S. marketplace. Most notably, it reveals that during 2019, the higher number of cases involving blockchain-related cases were concentrated in the United States District Court for the Southern District of New York (SDNY). The report describes,
Perhaps unexpectedly for a new industry that is global and decentralized, the SDNY has more than twice as many blockchain cases as any other venue. Perhaps this statistic reflects SDNY’s status as a hub of financial services litigation given cryptocurrency’s growing role in capital raising
The Incidence of Litigation in New York Reflects the City’s Status as the Hub of Financial Services.
So, the other five critical findings identified in the Blockchain Litigation Year-in-Review Report include:
1. The Southern District of New York (SDNY): More Blockchain Litigation Than Any Other Venue
2. The SEC Remained Active, with High Profile Enforcement Activity
3. Regulatory Enforcement Actions Drop Off
4. American Courts Issued Rulings that will Impact the Blockchain Industry
5. The SEC’s “Path to Compliance” is a Road Less Traveled
Of Course it’s New York
According to Daniel Payne, member of the Tech & Blockchain Practice and architect of the Blockchain Litigation Database, it is not surprising that an emerging industry, which is both global and decentralized, would see litigation budding in the Big Apple, and he adds,
Given cryptocurrency’s growing role in capital raising, the incidence of litigation in New York reflects the city’s status as the hub of financial services.
While the report does not specify that New York is the world’s leading blockchain litigation spot, the United States is renowned for being a serious hotbed for crypto regulations and lawsuits. With this in mind, it’s more than likely that New York is the world’s crypto lawsuit capital.
Why do you think the number of Blockchain-related litigations is higher in New York? Let us know your comments below.
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