A former Department of Justice, or DOJ, special counsel explains why his firm has brought twelve class action lawsuits against some of the biggest firms in crypto, and how information technology will do good the manufacture in the long run.

Jordan Goldstein is a partner at Selendy & Gay, a firm that joined forces with Roche Cyrulnik Freedman in bringing 12 class actions cases against crypto heavyweights. These include Binance (BNB), BitMex, and Block.1. In the past, Goldstein has helped his clients recover over $25 billion.

Investors should not be scared

Goldstein told Cointelegraph that his primary goal is to assist the investors who were allegedly misled by the issuers of unregistered securities. He firmly believes that these cases volition do good the industry in the long run:

"By bearing the costs of the litigation, it will forcefulness companies and issuers ex ante when they consider the new landscape after these lawsuits to be more than careful to follow the rules. And I do think that'southward hopefully 1 of the benefits here for blockchain and this sector in general, is that investors should not exist scared to be the ones who are buying and selling these securities."

Becoming lead plaintiff has its benefits

Goldstein said that there are significant benefits to joining these cases as a lead plaintiff:

"Serving as a lead plaintiff gives someone the opportunity to steer the litigation and make important decisions regarding strategy as well as settlement decisions. If there are folks who are interested in serving in that office, we're very happy to hear from them."

The deadline for joining most of these cases is June 8.

Goldstein does non believe that the crypto industry is significantly dissimilar from the fiscal industry, where the manufacture-wide misconduct led to the economical crunch of 2008. In any industry, if bad players remain unchecked, then everyone starts assuming that this behavior is permissible. Information technology also disfranchises good players, making them less competitive:

"I do think that's one of the salutary impacts of these litigations will be leveling the playing field so that in that location'southward sort of one set of rules that applies to all. Issuers of digital tokens and that those who sort of evade the rules aren't given an unfair advantage."

A source familiar with these cases told Cointelegraph that the legal battles may take years. Even if the courts rule in favor of the plaintiffs and award monetary damages, securing payouts from the not-U.S. entities will exist challenging.

Whether these cases will have a benign effect on the industry remains to be seen, still, it does not announced that we will meet the revival of 2022's Initial Money Offering, or ICO, frenzy someday soon.