What Did Your Brokerage Firm or Investment Adviser Do Wrong With GWG
Published On: May 17, 2022

Chicago-based Stoltmann Law Offices is representing investors who’ve suffered losses from firms that have not protected crypto assets. In this cyber age, some of the biggest thefts don’t involve masked robbers and guns. They happen online as thieves are increasingly stealing digital currencies and Non-Fungible Tokens (NFTs), which are valuable digital images. In the first quarter of this year alone, cyberthieves have robbed some $1.3 billion in hacking events, according to Atlas VPN.

How do thieves pull off these heists? They break into so-called online “digital wallets,” or online exchanges where investors store cyber currencies like Bitcoin. Unlike bank vaults with thick steel doors, these virtual storerooms can be accessed any number of ways through the internet. Third parties act as repositories for the currencies and include:

  • The Ethereum ecosystem was hacked 18 times, resulting in a loss of almost $636 million.
  • The most significant attack of the quarter occurred at the end of March, when the Axie Infinity sidechain Ronin Network was hacked. The theft totaled $610 million, with 173,600 Ethereum and 25.5 million USDC.
  • In the first quarter of 2022, the Solana ecosystem was hacked five times, resulting in a loss of $397 million.
  • Wormhole, a communication link between Solana and other DeFi networks, was hacked for the second time this quarter.
  • On Solana, an attacker took advantage of a signature verification flaw in the network to create 120K Wormhole-wrapped Ether worth $334 million.
  • Cybercriminals have compromised 14 projects in the Binance Smart Chain ecosystem, resulting in losses of approximately $100 million.
  • The QBridge deposit feature was used to launch an assault on the Qubit protocol. The hacker was able to generate $80 million in xETH (xplosive Ethereum) collateral as a result of the attack.

“Since the birth of Bitcoin in 2009,” reports Bitcoinst.com, “the crypto industry’s technology has advanced rapidly. Despite this, many crypto companies have failed to establish adequate security systems to prevent hackers from benefitting at the expense of their victims by exploiting security flaws. “Over $12 billion in cryptocurrencies has been stolen in the last 11 years. Hacks involving Decentralized Finance (DeFi) have increased, with fraudulent exchanges stealing up to 40% of cash.”

No matter where you deposit your cryptocurrencies or NFTs – or any investment for that matter – the firms you do business with have an obligation to keep your assets secure. If they don’t, you could have a case in arbitration or litigation.

If you are the victim of a hack and lost cryptocurrency as a result, you could have a claim to pursue in either litigation or arbitration. Please contact Stoltmann Law Offices, P.C. at 312-332-4200 for a free, no obligation consultation with a securities attorney. Stoltmann Law Offices is a contingency fee law firm which means we do not get paid until you do!


The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. The information should not be relied upon and there have been no findings made against the firms or individuals referenced on this site. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Stoltmann Law Offices (161 N Clark Street 16th Floor Chicago, IL 60601). The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.


Chicago Investment Fraud Attorneys Offering Nationwide Representation to Investors

If you have suffered financial losses because of the negligence or fraud of your financial advisor or broker through unsuitable investment recommendations, over-concentration, churning, misrepresenting risks, conversion or selling away, you have legal rights and options to pursue recovery of those losses.

Stoltmann Law Securities Investment Fraud Attorneys