New York City, home to Madison Square Garden is considered to be “the Mecca” of basketball. And now, according to one financial law firm’s 2019 Blockchain Technology Litigation Year-In-Review, it should also be considered the Mecca of cryptocurrency litigation.
Back in 2018, Murphy & McGonigle, (a financial services law firm with 52 attorneys spread across offices in NYC, DC, and Richmond, VA) created a proprietary, data-based tool to monitor U.S. litigation in the blockchain industry. As of today, it’s known to be the only database of its kind, they’re calling it the Blockchain Litigation Database (BLD).
The BLD tracks cases involving:
- Blockchain-based companies
- Mining companies
- Crypto-investment platforms
- ICO issuers and consultants
One of the biggest takeaways from their year-end review was the discovery that the Southern District of New York (NYC) is far and away home to the most cryptocurrency cases in the country, with 54. Miami and Northern California were the next most popular cities for litigation with 19 cases each. A statistic that Murphy & McGonigle say,
“Reflects SDNY’s status as a hub of financial services
litigation given cryptocurrency’s growing role in capital raising.”
OK, so the fact that NYC is a worldwide hub of financial activity isn’t groundbreaking news. But for blockchain technology, a global and decentralized form of currency, it is surprising to see that NYC is becoming its unofficial legal headquarters.
Some more interesting data reflected that the amount of cases involving bitcoin and blockchain actually dropped off from 2018. As per the firm’s report this is because,
“(the 2018) spike is largely attributable to a wave of regulatory enforcement actions…”
“Following the 2018 enforcement wave, blockchain litigation returned to its previous upward trajectory in 2019.”
Daniel Payne and Cameron Matheson, attorneys at Murphy & McGonigle, are the main contacts for getting access to the Blockchain Litigation Database. From a Forbes article last August, “The law firm (M&M), which represents banks including Capital One and Morgan Stanley and cryptocurrency exchanges Coinbase and Bittrex, charges $5,000 to access the technology and $2,500 a month on an ongoing basis.”