Blockchain and Cryptocurrency Fraudand Loss Recovery

Blockchain technology and digital assets have transformed global finance and commerce. At the same time, the rapid growth of cryptocurrencies and decentralized finance has created fertile ground for misconduct—including fraud, misrepresentation, manipulation, and security failures that can cause substantial investor losses.

Taylor Copeland Law represents investors who have suffered significant financial harm in connection with digital assets and blockchain-related conduct, including cases where traditional regulatory enforcement is uncertain or unavailable.

Why This Practice Area Matters

The legal and regulatory landscape for blockchain and cryptocurrency continues to evolve rapidly. Federal and state authorities, including the Securities and Exchange Commission and Commodity Futures Trading Commission, are increasingly active in enforcement and litigation related to digital assets and exchanges. Courts also play a central role in interpreting how longstanding securities, commodities, and consumer protection laws apply to tokens, protocols, and trading platforms.

At the same time, new forms of misconduct—such as rug pulls, unauthorized exchange withdrawals, SIM swap attacks, and deceptive memecoin promotions—fall outside traditional enforcement tracks and often require private civil action to pursue investor recovery.

Types of Matters We Handle

We evaluate and pursue claims involving:

  • Fraudulent Token Sales and ICO Misconduct
    Misrepresentations and omissions in initial offerings, including false statements about use of proceeds, undisclosed insider allocations, failure to comply with securities laws and disclosure requirements, and failure to deliver promised technology or products.

  • DeFi Rug Pulls and Exit Scams
    Sudden removal of liquidity, abandonment of protocols, and other conduct that leaves investors unable to recover their funds.

  • Market Manipulation and Promoter Misconduct
    Coordinated pump-and-dump activity, undisclosed influencer compensation, and deceptive market tactics.

  • Exchange and Custodian Failures
    Unauthorized account takeovers, inadequate security controls, and delayed or denied reimbursement for lost assets.

  • Account Security Breaches (SIM Swap / Identity Theft)
    Losses resulting from compromised authentication methods that lead to account access and asset transfers.

  • Breach-related Digital Asset Theft
    Losses linked to data breaches at exchanges, custodians, or affiliated service providers where compromised information leads to asset loss.

Representative Results

Our experience includes both public and confidential recoveries. We have been appointed lead or co-lead counsel in significant digital asset matters and achieved meaningful outcomes on behalf of investors, including:

  • Tezos ICO – We filed the first case alleging that the sale of pre-functional tokens through an ICO violated U.S. securities laws and obtained a $25 million settlement on behalf of investors in the ICO.

  • Centra ICO – We were appointed co-lead counsel and obtained a $33 million judgment against Centra Tech on behalf of a investors in the ICO.

  • Voyager - We obtained a $6.5 million settlement on behalf of investors in Voyager’s VGX Token and its interest-bearing Voyager Earn Program.

  • Unikrn ICO – We brought a securities class action alleging that the sale of UKG violated U.S. securities laws. The case was resolved after Unikrn agreed to pay a $6.1 million penalty to the SEC to be distributed to investors in the ICO.

  • Ripple – We were appointed co-lead counsel in the ongoing securities class action alleging that Ripple Labs, its subsidiary, and its CEO violated state and federal securities laws by selling unregistered XRP token securities.

A Selective and Strategic Approach

Not all digital asset losses merit civil litigation. We evaluate potential matters for:

  • The nature and scale of investor losses

  • The strength and traceability of evidence

  • The applicability of securities, commodities, and consumer protection laws

  • The availability of viable defendants and applicable jurisdictions

This disciplined approach enables us to focus on matters with a realistic path to recovery and legal merit.

Confidential Case Review

If you or your organization suffered a significant loss involving blockchain technology or digital assets, we invite you to request a Confidential Case Review. Submitting information through this process is secure and does not create an attorney-client relationship unless confirmed in writing.

FAQs

What types of blockchain and cryptocurrency matters do you handle?

1

We evaluate matters involving cryptocurrency fraud and digital asset losses, including fraudulent token sales and ICO misconduct, DeFi rug pulls and exit scams, memecoin-related misrepresentations and market manipulation, exchange or custodian security failures, SIM swap and account takeover losses, and data breaches that lead to digital asset theft. The applicable legal claims depend on the facts, the parties involved, and the jurisdiction.

Do you handle rug pulls and DeFi exit scams?

Yes. We evaluate DeFi matters involving liquidity removal, insider token dumping, misleading tokenomics or audit claims, false decentralization representations, and sudden abandonment of a protocol or project. We assess whether there are viable defendants and whether the economics of litigation support an individual action or a collective proceeding.

Do you represent investors in token sales and ICO-related claims?

Yes. We evaluate claims arising from token sales and ICOs involving alleged misrepresentations or omissions, undisclosed insider allocations, use-of-proceeds issues, promoter conduct, and post-offering trading activity. Depending on the facts, these matters may involve securities-law, fraud, and related civil claims.

Can you help with SIM swap attacks and account takeovers that lead to crypto losses?

Yes. We evaluate SIM swap and account takeover matters where a phone number is fraudulently ported or authentication is compromised and digital assets are transferred without authorization. Depending on the incident, potential defendants may include telecommunications providers, exchanges or custodians, and other entities responsible for security controls.

Do you bring individual cases or class actions?

We evaluate both high-value individual matters and cases with class-action or collective-action potential. Some matters involve uniform representations or common conduct affecting many investors and may be appropriate for aggregation. Others are better suited to individual litigation based on loss size and factual circumstances. We assess both pathways during intake.

What information should I preserve before contacting counsel?

You should preserve transaction hashes (TXIDs), wallet addresses, exchange or custodian communications, screenshots, account alerts, and any materials describing the project or token, including whitepapers, websites, marketing materials, and Discord, Telegram, or social media communications. If the loss involves a SIM swap or account takeover, preserve carrier notices and any communications regarding number changes or authentication.

Do you work with investigators or blockchain tracing specialists?

Depending on the matter, we may evaluate blockchain transaction data and other records to understand how assets moved and what evidence is available. Whether specialized tracing or third-party support is appropriate depends on the facts, the scale of losses, and the litigation strategy.

How quickly should I act after a crypto loss?

Prompt action is important. Platform logs, authentication records, and telecommunications data may be retained for limited periods, and delays can affect available remedies. Preserving evidence and documenting the incident early can materially impact the viability of a claim.