Los Angeles, CA, May 9, 2017 – Berns Weiss LLP announces that is investigating potential claims on behalf of cryptocurrency exchange users who may have incurred losses due to recent DDoS attacks.
On May 7, 2017, San Francisco-based virtual currency exchange Kraken executed a large sell order for the popular cryptocurrency, Ether, which depressed the price of that currency. Within the same hour, the exchange’s website was the subject of a Distributed Denial of Service (DDoS) attack, which prevented Kraken users from logging in to the site to manage their accounts.
Delaware-based exchange Poloniex was also the subject of a DDoS attack on May 8, 2017, within minutes of the execution of a large Ether sell order.
Due to users’ inability to access their accounts because of the attacks, both Kraken and Poloniex exercised their discretion to liquidate users’ margin accounts. This action has led users to assert that they may have been the victims of market manipulation and possible insider trading. If the exchanges or individuals associated with the exchanges violated the law, then users who suffered losses as a result of those violations may bring a lawsuit to recover money damages.
According to Jeffrey Berns, Managing Partner of Berns Weiss LLP, “the virtual currency/blockchain practice group of Berns Weiss LLP has been contacted by various people inquiring about potential legal action against Poloniex and Kraken with regard to the recent sell off at those exchanges in conjunction with DDoS attacks.” If you are a Kraken or Poloniex customer who has suffered losses since the DDoS attacks began and would like information, or if you have information that may be useful to our investigation, please contact us at firstname.lastname@example.org.
Berns Weiss is ideally positioned to protect the rights of the individuals who participate in the developing virtual currency/blockchain eco-system. Its partners have decades of experience protecting the rights of consumers, employees, retirees and investors through class action litigation in federal and state court. The firm’s Virtual Currency and Blockchain Technology practice group is staffed by attorneys that have developed the necessary experience and expertise to guide individuals and businesses working on virtual currency and blockchain applications through the existing legal labyrinth.
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