117 Partners, a firm that has worked on claims tied to major crypto bankruptcies including FTX, Mt. Gox, and Celsius, is exploring two parallel recovery options following the security incident involving Coldcard maker Coinkite. Founder Thomas Braziel said one route would be a product liability case in Canada, based on the argument that a company should not sell a defective security product that causes major customer losses. If the facts support that claim, the expected class action structure would use a contingency fee of about 33%, with no upfront legal fees for victims, and a projected timeline of one to three years.
The second route focuses on asset recovery from the hackers. That approach includes assessing a temporary restraining order, or TRO, in the United States, identifying the wallets and intermediary accounts involved, obtaining judgments where appropriate, and pursuing claims against third parties that may have held or handled the stolen assets. Braziel said that path may require litigation funding, though it could move faster. He also said there is no guarantee of a successful recovery at this stage, and that the strategy is still being refined through discussions with additional legal teams.
117 Partners, a firm that has worked on claims related to crypto bankruptcy cases including FTX, Mt. Gox, and Celsius, is exploring two parallel recovery paths after the security incident involving Coldcard manufacturer Coinkite.
In a post, 117 Partners founder Thomas Braziel said the first option is a product liability lawsuit against Coinkite in Canada. The legal theory is that a company should not sell a security product that is defective and causes substantial losses to customers. If the underlying facts support that claim, the expected class action structure would use a contingency fee model of about 33%, meaning victims would not need to pay legal fees upfront. The process is expected to take one to three years.
The second option is an asset recovery strategy aimed at the hackers. That track includes evaluating a temporary restraining order, or TRO, in the United States, identifying the wallets and intermediary accounts involved, obtaining a judgment where appropriate, and pursuing recovery from third parties that may have held or handled the stolen assets. Braziel said this route may require litigation funding, but it is expected to move faster.
He added that there is currently no guarantee that any recovery can be achieved, and the strategy is still evolving through discussions with additional legal teams.
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