1818 Blog

Can Consumers Bring a Claim Against an Exchange?

As a former financial regulator, I know first-hand there are good and bad actors.  If you have invested money and one of the major exchanges has locked you out, don’t wait to contact a lawyer.  There are many platforms including Binance, Coinbase, FTX, KuCoin, Kraken and others.  

These exchange platforms have seen incredible growth in the last few years and many people are using them as new opportunities to make quick trades.  With the increased demand for these platforms, the exchanges are light on customer service and consumers are running into roadblocks when their accounts are frozen or being hacked.

Can Consumers Bring a Claim Against an Exchange?  

Generally, yes.  The first thing to look at is whether there is an arbitration requirement in the exchange’s terms of use.  Another thing a lawyer will need to analyze is the proper forum for suit, which includes looking at where the exchange are incorporated, where it has a physical presence, analyzing the user agreement, and other factors.

Time is critical for these cases.  Anyone who has bought a coin or token knows how quickly prices can move.  If an exchange locks you out your value could be cut in half if you intended to trade at a certain point. 

If you have had your account frozen, had your account hacked, or experienced other problems with an exchange give us a call today.  It is very important to document everything and screenshot your communications with customer support and any unauthorized transactions.

The information in this blog post is provided for informational purposes only and is not intended to be legal advice. You should not make a decision whether or not to contact an attorney based upon the information in this blog post. No attorney-client relationship is formed nor should any such relationship be implied. If you require legal advice, please consult with an attorney licensed to practice in your jurisdiction.

Author Bio

Jordan Matyas is a lawyer, lobbyist, and Founder of 1818 Legal, an Illinois professional licensing defense law firm he created in 2014. With more than 18 years of experience practicing law, he represents clients in a wide range of legal matters, including professional license defense, administrative law, land use and zoning, and state, local, and municipal law.

Jordan received his Juris Doctor from the University of Illinois — Chicago School of Law and is a member of the Illinois Bar Association. 

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