Chicago-based Stoltmann Law Offices is representing investors who’ve been victims of cryptocurrency thefts. These days, cryptocurrencies or “digital cash” are all the rage. You can speculate with it, buy a few consumer goods, and even play games. Unfortunately, like any currency that is a store of value, it can be stolen.
One of the largest heists in the short history of cryptocurrencies occurred recently when customers of Axie Infinity, a play-to-earn online game, lost some $625 million to a thieving hacker.
It was reported that the Axie account was hacked on March 23rd, although it was only revealed on Tuesday, March 29th. According to Yahoo News, “Axie Infinity remains one of the most popular play-to-earn games, and users continued to log on Wednesday after news of the crypto heist. Hackers targeted a vulnerability in the bridge — or a software mechanism for exchanging types of crypto tokens — to drain funds in two separate transactions.”
Thieves are at work 24/7 to steal cryptocurrencies, which are not stored in insured bank accounts, but “digital wallets.” Hackers reportedly circulate “malicious apps” that operate on Android and iPhones that are distributed through fake websites and gain access to the digital cash.
Crypto theft is proving to be a popular modus operandi for global digital robbers. Cryptocurrency-based crime hit a new all-time high in 2021, with illicit addresses receiving $14 billion over the course of the year, up from $7.8 billion in 2020, according to Chainanalysis.com. Unlike money deposited in banks or brokerage trading accounts, digital currency is subject to very little regulation.
Although details of the digital robbery are sketchy, the parent company of Axie stated it will work on recovering the stolen cryptocurrency. “We are fully committed to reimbursing our players as soon as possible,” Aleksander Leonard Larsen, chief operating officer of Sky Mavis, told Bloomberg. “We’re still working on a solution, that is an ongoing discussion.”
Note: If you entrust your funds with a third party, they are obligated to keep it in a secure account that can’t be pilfered. If your money is stolen, they can be sued or named in arbitration claims. Broker-advisers who recommend investments in crypto can also be named in arbitration cases.
If you are the victim of crypto-currency hacking or theft, you may have a claim to pursue through arbitration or litigation. Please contact Stoltmann Law Offices, P.C. at 312-332-4200 for a free, no obligation consultation with a securities attorney. Stoltmann Law Offices is a contingency fee law firm which means we do not get paid until you do!