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Nationwide Case Review · 2026

Lost Money to Crypto Fraud or a Stolen Wallet?
Cornerstone Law Can Help.

Securities-fraud claims against exchanges, token issuers, and celebrity promoters are surviving motions to dismiss in federal court. Courts are increasingly treating crypto tokens as unregistered securities, and parallel DOJ and SEC actions are strengthening civil claims. Cornerstone Law is reviewing cases nationwide — with no upfront cost to you.

Call Now: 1-800-928-9445
Crypto fraud has become one of the fastest-growing areas of financial litigation, with billions lost each year to exchange hacks, Ponzi schemes, rug pulls, SIM-swap attacks, and fraudulent investment platforms. Class actions targeting exchanges, token issuers, and celebrity promoters are advancing past motions to dismiss in federal court, and discovery is producing wallet-tracing data, internal risk-control documents, and communications with regulators that are strengthening victims' claims.
SDNY Southern District of New York, primary hub
ND Cal. Northern District of California, major docket
SEC + DOJ Parallel enforcement strengthening civil claims
$B+ Lost annually to crypto fraud schemes

Federal Litigation

Where the Major Cases Are Advancing

Two federal districts are driving crypto fraud class action litigation. Recent rulings in both courts have allowed securities-fraud claims to proceed, with courts increasingly treating many tokens as unregistered securities and expanding investor protections accordingly.

Southern District of New York

SDNY — Primary Litigation Hub

  • Securities-fraud claims surviving motions to dismiss
  • Tokens increasingly treated as unregistered securities
  • Discovery includes wallet-tracing and internal risk-control documents
  • Parallel DOJ criminal prosecutions strengthening civil claims

Northern District of California

ND Cal. — Exchange and Platform Cases

  • Class actions against major exchanges for failure to protect customer assets
  • Claims against influencers and celebrity promoters advancing
  • SEC enforcement actions providing factual foundation for civil plaintiffs
  • Investor protection theories expanding with each ruling
  • Increased SEC and DOJ enforcement is strengthening civil plaintiffs' claims and producing evidence usable in class actions
  • Tokens are increasingly recognized as securities — courts in SDNY and ND Cal. are applying securities law frameworks, expanding investor protections
  • Asset tracing and recovery is active — victims are recovering funds through litigation, arbitration, and blockchain-based tracing actions

Common Fraud Schemes

What Types of Crypto Fraud Are Being Litigated?

Crypto fraud takes many forms, from sophisticated securities violations by well-funded platforms to targeted individual attacks. Cornerstone Law handles claims arising from all major fraud categories.

Exchange Hacks

Exchanges failed to implement adequate security, allowing hackers to drain customer wallets. Victims may have claims against the platform for negligence and breach of fiduciary duty.

SIM-Swap Attacks

Criminals bribe or deceive mobile carriers into transferring a victim's phone number, gaining access to crypto accounts. Claims may lie against both the attacker and the carrier.

Rug Pulls

Token developers hype a project, collect investor funds, then abandon it, draining liquidity and leaving investors with worthless assets. Securities fraud claims are increasingly viable.

Ponzi Schemes

Fraudulent platforms promise guaranteed returns and use new investor funds to pay earlier participants until the scheme collapses. Civil and criminal liability often overlap.

Fake Trading Platforms

Fraudulent exchanges display fabricated balances and profits, then block withdrawals. Victims are often targeted through social media or romance fraud before being directed to the platform.

Romance Scams and Pig Butchering

Scammers build trust over weeks or months before directing victims to fraudulent crypto platforms. Losses frequently exceed six figures and are increasingly litigated.

Fraudulent NFT Projects

NFT creators promise utility, community access, or future value, then abandon the project after minting. Celebrity-endorsed NFTs face heightened securities scrutiny.

DeFi Protocol Failures

Decentralized finance protocols with undisclosed vulnerabilities, exploited smart contracts, or fraudulent governance structures have cost investors billions in recoverable losses.

How We Recover Your Losses

Multiple Paths to Recovery

Unlike traditional mass torts, crypto fraud recovery can be pursued through several simultaneous channels. Cornerstone Law identifies every viable avenue and pursues them in parallel to maximize total recovery.

Path 1 Class Action Litigation

Securities-fraud and consumer-protection class actions in SDNY and ND Cal. against exchanges, token issuers, and promoters. Courts are increasingly allowing these claims to proceed.

Path 2 Asset Tracing and Recovery

Blockchain forensics and wallet-tracing can identify where stolen funds moved. Tracing actions, freezing orders, and recovery proceedings can reclaim assets even after they leave an exchange.

Path 3 Arbitration

Many exchanges require arbitration under their terms of service. We navigate arbitration proceedings and pursue claims directly against platforms for customer losses.

Path 4 Regulatory Action

Coordinating with SEC and DOJ enforcement actions can accelerate civil recovery. Parallel criminal proceedings produce evidence and admissions usable in civil litigation.

Crypto fraud cases are time-sensitive. Stolen assets move quickly across wallets and exchanges. Early engagement allows a forensic team to begin tracing before assets are further obfuscated or converted.

Common Questions

What Clients Ask Us Most

Can stolen crypto actually be recovered once it's moved to another wallet?

Sometimes, yes. Blockchain transactions are traceable by design, and forensic tracing can follow funds even through multiple wallets or mixers, though recovery isn't guaranteed and speed matters.

What does it cost to work with Cornerstone Law?

We handle crypto fraud cases on contingency — no upfront fee, and we only get paid if we recover compensation for you.

I already reported this to the exchange and the FBI — do I still need a lawyer?

Reporting to the platform and law enforcement is a good first step, but it doesn't pursue civil recovery on your behalf. An attorney can pursue tracing, arbitration, and litigation in parallel with any criminal investigation.

I lost money to a scam, not a hack — is that still something you handle?

Yes. Romance scams, fake trading platforms, and Ponzi schemes are among the most common cases we see, in addition to exchange hacks and technical exploits.

Why Cornerstone Law: We combine blockchain forensics with litigation, arbitration, and regulatory coordination to pursue every viable path to recovery in parallel, rather than one avenue at a time.

Cornerstone Law Is Reviewing Crypto Fraud Cases Nationwide

We help victims trace stolen assets, pursue litigation, and recover losses from exchanges, scammers, and negligent platforms. Find out what recovery paths may be available to you.

Get a Free Case Review

No fee unless we recover compensation for you. Call 1-800-928-9445.

This page is for informational purposes only and does not constitute legal advice. Prior results do not guarantee a similar outcome in any future case. This is a paid legal advertisement from Cornerstone Law, LLP. Attorney Frank Zeccola, Esq., licensed to practice law in California, is responsible for this advertisement.
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