The Rise of a Crypto Lawyer Crusader

Ben Thomson, LawFuel contributing writer

In the rapidly evolving world of cryptocurrency and the scandalous collapse of the FTX exchange, one name has emerged as a formidable force in the legal arena: Adam Moskowitz, the ‘Crypto Crusader’ who has become synonymous with high-profile class action lawsuits against major players in the crypto industry.

In the FTX crypto exchange case set up by former CEO Sam Bankman Fried has involved an increasingly bitter legal battle between lawyers and the courts who should handle the distribution of billions of dollars to be allocated from the liquidation.

And Moskowitz is in the midst of the battle, assisting in the consolidated court action (MDL) which has even lead to a class action accusing FTX law firm Sullivan & Cromwell of helping FTX insiders to defraud customers.

Sullivan & Cromwell has denied wrongdoing and moved to dismiss the class action. Moskowitz is working on the consolidated claim with famed attorney and LawFuel Law Star David Boies (pictured) in resisting attempts to alter the proposed plan for FTX bankruptcy plan, claiming that FTX is misleading customers about their proposed recovery and how it will be affected by settlements in the claim they are acting on.

A graduate of the University of Miami School of Law, Moskowitz cut his teeth in the legal world by working on complex class action suits in various fields, including consumer protection and financial services.

He founded his eponymous The Moskowitz Law Firm in 2017, capitalizing on his experience and reputation to build a boutique practice focused on class action litigation.

The firm’s big growth came with the explosive growth of the cryptocurrency market, which would soon define Moskowitz’s legal career and push him into the headlines.

Crypto in the Crosshairs

As cryptocurrencies gained mainstream attention, Moskowitz recognized a pattern of what he perceived as misleading marketing practices and potential violations of securities laws leading him to spearhead a series of class action lawsuits against some of the biggest names in the crypto world.

And the legal battlers some came along, including –

1. Celebrity Endorsements: A lawsuit alleging that celebrities like Tom Brady, Gisele Bündchen, and Larry David promoted FTX cryptocurrency exchange without disclosing their compensation, potentially violating securities laws. Tom Brady, for instance, was an ‘ambassador’ for the ill-fated FTX exchange.
2. Binance and Coinbase: Separate legal actions against these major exchanges, claiming they sold unregistered securities to U.S. investors.
3. Voyager Digital: A suit alleging that the now-bankrupt crypto lender operated as an unregistered securities exchange. When the company went bankrupt in mid-2022 Moskowitz left investors with losses of around 3.5 billion on the coins, Moskowitz took aim at the deep pockets of Mark Cuban and his NBA team who had trumpeted the merits of the currency

Legal Strategy and Key Claims

At the heart of Moskowitz’s legal strategy is the assertion that many cryptocurrencies should be classified as securities under U.S. law which in turn would subject them to strict regulatory oversight by the Securities and Exchange Commission (SEC).

His claims include the fact that there was a failure to register cryptocurrencies as securities, misleading marketing and breaching fiduciary duty.

Moskowitz argues that these practices have led to significant financial losses for retail investors who were inadequately informed about the risks involved in crypto investments.

Building a Niche Crypto Practice

Moskowitz’s success in carving out a niche in cryptocurrency litigation can be attributed to several factors, the major one being his early entry into the whole cryptocurrency legal market. His key law market advantages include –

1. Early Mover Advantage: By focusing on crypto-related cases early, Moskowitz positioned himself as an expert in an emerging field of law at a time when many were getting their heads around what it was all about, let alone the legal implications.
2. Media Savvy: Moskowitz has effectively used media appearances and interviews to raise awareness about his cases and attract potential clients, which has lifted his profile as his major cases have advanced through the court system.
3. Collaborative Approach: The attorney frequently collaborates with other law firms, pooling resources and expertise to take on well-funded opponents.
4. Adaptability: As the crypto landscape evolves, Moskowitz has shown an ability to quickly adapt his legal strategies to address new issues and challenges.

The Road Ahead

As regulatory scrutiny of the cryptocurrency industry intensifies, Moskowitz’s caseload is likely to grow, along with the competition in this space.

The outcomes of his current lawsuits could have far-reaching implications for how digital assets are regulated and marketed in the United States.

A number of big law competitors and boutique firms like Moskowitch’s are entering the market.

Crypto Competitors

Five of the emerging big law competitors include –

1. Roche Freedman LLP: This firm has been at the forefront of crypto litigation, filing numerous high-profile cases against major exchanges and issuers.
2. Boies Schiller Flexner LLP: Known for handling complex litigation, this firm has taken on cases involving cryptocurrency fraud and securities violations.
3. Robbins Geller Rudman & Dowd LLP: A powerhouse in securities litigation, they have expanded into crypto-related class actions.
4. Latham & Watkins LLP: While often defending crypto companies, they’ve also built a practice advising on regulatory compliance and potential litigation risks.
5. Skadden, Arps, Slate, Meagher & Flom LLP: Skadden have established a dedicated blockchain and cryptocurrency group to handle both advisory work and litigation and will doubtless increase their ‘digital footprint’ in this space.

Among the boutique law practices that have emerged are –

Silver Miller: Led by David Silver, this firm has been involved in numerous cryptocurrency-related lawsuits and class actions and is set for further involvement.

Levi & Korsinsky LLP: Known for securities litigation, they’ve expanded into crypto-related cases.

Kyle Roche: Although he faced controversy and stepped back from crypto cases in 2022, Roche was previously a major competitor in this space.

While critics argue that Moskowitz’s actions may stifle innovation in the crypto space, supporters view his work as necessary to protect investors and bring accountability to an industry often described as the “Wild West” of finance.

Regardless of one’s stance on cryptocurrency, it’s clear that Adam Moskowitz has established himself as a pivotal figure in shaping the legal landscape of this emerging asset class. His journey from a traditional class action attorney to a crypto-focused litigator serves as a case study in how lawyers can adapt to new technologies and build influential practices in rapidly evolving fields.

As the crypto industry continues to mature, all eyes will be on Moskowitz and his firm to see how their legal challenges unfold and potentially reshape the future of digital finance.