A Judge in the United Stated District Court for the Southern District of New York recently permitted plaintiffs to proceed in their claims involving the Electronic Funds Transfer Act. The EFTA, implemented by Regulation E, provides critical protections for consumers who are victims of unauthorized electronic funds transfers, including providing limits on any consumer liability for unauthorized electronic fund transfers. Cryptocurrency exchanges have not conceded that they are subject to the EFTA. While this opinion was given at an early stage of litigation, it is an important step to provide much-needed protections for victims of SIM swaps and cryptocurrency losses pursuing claims against cryptocurrency exchanges and provide compensation for these losses.

If you have a question about SIM swaps, hacks, or other cryptocurrency loss, contact Michael Haeberle at mhaeberle@pattersonlawfirm.com.