David Silver An Attorney That Dedicated His Career to Fighting Crypto Scams
There were several Initial Coin Offerings (ICOs) launched at the end of 2017 and the beginning of 2018. Most of them were simply scams or fraudulent projects that aimed at stealing investors’ funds. However, David Silver, is a corporate attorney that has led the largest crypto cases this year in the United States.
During a conversation with The Block, he talked about the crypto industry and different scams that affect the whole crypto environment. In 2015 he launched his first crypto-based lawsuit against Paul Vernon, that managed the crypto exchange Crypsty and stole $20,000 worth of Bitcoin from Silver’s client.
In this way, Vernon had to pay back the stolen assets. However, Silver filed a landmark class action against Coinbase. As soon as Vernon stole these $20,000 he moved the funds to Coinbase. The landmark class-action against this popular exchange was because it failed to do due diligence on their customer.
Silver has also been involved in some other cases related to other virtual currencies such as Nano or Tezos. Most of Silver’s clients believe that they are victims of unregistered securities, negligence or unjust enrichment. However, he has such a high demand that he can only accept 20% of the cases he receives.
“It’s kind of like dating as soon as you get to one level, you can keep doing a little bit better. There are certain cases where I know I won’t collect anything, but I feel a principled fight. I’m going to fight those to the bitter end.”
He mentions that if an exchange promised something in their terms of services they must to deliver it. He compares this with buying a car. Silver says that when a person purchases a new car he expects to have working brakes, and the same logic can be applied to crypto exchanges or services providers.
He explains that those exchanges that work side by side with regulators are safer platforms than those that do not work with these regulators. Some of them, he says are not going to be here the next year.
Silver talked about a Singapore-based mining firm called Giga Watt that declared bankruptcy. He mentioned that they raised $30 million expecting to build shacks in Washington, but they ended up buying a Lamborghini.
However, Silver is not a skeptic about virtual currencies. He said that the winter was good for cryptocurrencies. Additionally, he receives part of the payments in virtual currencies and this is why he now holds different assets.