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Cryptocurrency Theft Lawsuits Diminish Amid Rise in Cybercrime

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Within the aftermath of digital heists, authorized reduction stays scarce for victims suing cryptocurrency platforms and cellular service suppliers accused of inadequately safeguarding customers’ property, together with crypto wallets and telephone numbers.

Regardless of rising cybercrime, complaints blaming crypto theft on lax firm safety fell to a mere 11 instances in 2023 after peaking at 20 new instances a yr earlier, in response to an evaluation of Bloomberg Regulation’s docket knowledge. The first motive for victims’ lack of ability to search out reduction in courtroom is non-public arbitration provisions saving the biggest cryptocurrency exchanges and cellular suppliers from litigation, dockets present.

Arbitration and different contractual protections …

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