Chicago-based Stoltmann Law Offices is representing clients who’ve suffered losses from advisors who sold clients cryptocurrencies that have lost value and investors who have lost funds due to identity theft, fraud, and hacking involving their crypto-currency accounts. One of the biggest stories in finance, has been the epic crash of cryptocurrencies, which were pitched as profitable alternatives to cash, stocks, and bonds. “Cryptos” were sold as sure-fire hedges against inflation, but as inflation continued to rise, digital currencies kept heading south in a big way.
Worse yet, the overselling of cryptos has been tied to $1 billion losses in outright scams involving more than 46,000 people, according to the Federal Trade Commission (FTC). As with most swindles, investors were enticed with the promise of quick wealth with no risk. The “Crypto Crash” goes beyond the perils of high inflation and supply chain issues, though. Many observers believe the promise of crypto wealth is actually a Ponzi scheme that’s not linked to any underlying legitimate investment and is fueled by a stream of new investors being duped by the illusion of instant wealth.
The decline in some cryptos has been devastating. According to Robert Reich in The Guardian: “TerraUSD, a `stablecoin,” – a system that was supposed to perform a lot like a conventional bank account, but was backed only by a cryptocurrency called Luna – collapsed, losing 97% of its value in just 24 hours, apparently destroying some investors’ life savings.”