Cryptocurrency Scams, Ponzi Schemes, and DeFi Rug Pulls  – Class Action Investigation

Chimicles Schwartz Kriner Donaldson-Smith is investigating potential class action claims in connection with crypto companies selling coins or tokens, sometimes in an initial coin offering (ICO), with the intent of enriching themselves at the expense of their investors. We are investigating claims that the sale of these speculative tokens and coins constitute the illegal sale of unregistered securities. We are also investigating other claims arising from Decentralized Finance (“DeFi”) rug pulling scams. In these scams, the company owners create a DeFi token that often uses a smart contract “liquidity pool.” The creators retain a large amount of the tokens for themselves and then sell the remaining tokens to investors and encourage them to get in early and hype the token mostly on social media platforms. Once the token becomes popular and the value rises, the company creators sell all of their tokens at once for a huge profit, which renders their investors’ tokens virtually worthless. These and other variants are also commonly referred to as pump-and-dump or liquidity scams.

If you believe you have invested and been harmed in a crypto scam, we would like to hear from you.

Cryptocurrency Scam (#208)

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Attorneys for this case:

Timothy N. Mathews
Zachary P. Beatty