Ronald V. Dellums Federal Building and U.S. Courthouse in Oakland, California. Photo: Jason Doiy/ALMCrypto Exchange’s ‘Meteoric Rise’ Leads to Nationwide Class Action Trend
“Decentralize exchanges are getting hit left and right,” said Joe Doll, general counsel at Magic Eden, one of the biggest NFT platforms in the world. “So this is definitely a trend to watch.”
January 14, 2025 at 04:50 PM
4 minute read
What You Need to Know
- OKX Group and its various entities are facing a nationwide class action.
- The potential class alleged violations of U.S. laws and regulations that were established to “protect consumers, investors, and American national security.”
- The plaintiffs also alleged claims under the Racketeer Influenced and Corrupt Organizations Act, plus conversion and aiding and abetting conversion.
OKX, the world’s second-largest cryptocurrency exchange, is facing a nationwide class action lawsuit in a California federal district court over allegations that its “meteoric rise was achieved through willfully violating numerous U.S. laws and regulations” at the expense of “consumers, investors, and American national security.”
Tonya M. Evans, a leading authority in digital asset litigation and a Penn State Dickinson Law professor who is not involved in the matter, said that the allegations raised the issue not only of the responsibility of centralized exchanges to deliver the primary transactional services, but also their fiduciary duty to safeguard assets.
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