U.S. cryptocurrency-focused law firm announces another class action lawsuit
While in many countries throughout the world cryptocurrency and crypto-related products fall into the grey area of the law, in the U.S. it’s treated as securities, and governed by the Securities and Exchange Commission (SEC). Despite over $1 billion dollars lost in crypto thefts and scams during 2018 alone, SEC managed to recover only $36 million for the victims under the criminal proceedings, which led a lot of them to go through a civil action instead.
Silver Miller Law, one of the leading U.S. law firms specializing in crypto-related cases, has announced a new federal court lawsuit on behalf of investors against Coin Signals and its owner, Jeremy Spence. According to the official press release supplied by Silver Miller Law, the lawsuit alleges a Ponzi scheme under which Coin Signals has been operating. According to the release and case filings, Spence solicited investors worldwide via Telegram and Discord, collecting funds from new investors and distributing them to the old ones as a “profit.” According to Silver Miller Law, during the process Spence took a large portion of the funds and used them to pay for personal and business debts and expenses.
The lawsuit currently includes 10 Plaintiffs. Notably, in the U.S. court system there’s no specific “cut-off number” for how many Plaintiffs should be included in a lawsuit for it to be considered a class action. Instead, the courts tend to look at the similarities of the claims, and the damages arising. However, a lot of times cases with less than 20 plaintiffs were found by judges to be insufficient for a class action classification. It’s unclear at this point whether more Plaintiffs are joining the current case against Coin Signals. In the meantime, the filed lawsuit seeks full and complete return of all investments to the victims, and imposing monetary penalties against Spence and his collaborators.