BitConnect accused of extorting victims out of $770,000 in class action lawsuit
The suit has been brought by six former, disgruntled investors.
Judgement day has arrived for BitConnect in the form of a class action lawsuit in the Southern District of Florida. The complainants allege that the company behind the now-defunct BitConnect platform swindled more than $770,000 from six different individuals.
In addition to going after BitConnect branches in the UK, the lawsuit also names various affiliate marketers, including YouTube personalities, who promoted the platform to unsuspecting investors.
CryptoNick, who was one of the most notable promoters of BitConnect on YouTube, is named in the lawsuit as John Doe. Glenn Arcaro, who supposedly holds a director position at the controversial company, is also named.
$771,000 in total losses are outlined in the lawsuit
The total losses outlined in the lawsuit against BitConnect range from $11,500 to $200,000 per plaintiff.
“Plaintiffs and class members seek compensatory and equitable relief rescinding their investments in BitConnect and restoring them the assets and funds they were fraudulently induced into investing,” the filing says.
The lawsuit filing adds that anyone who invested in BitConnect while not being involved in the defendants’ affiliate marketing program can join the class action case. Currently, the plan is to seek a trial by jury.
As previously reported, some YouTube personalities – who have now been named in the class action lawsuit – wiped their channels of BitConnect references as soon as cease and desist orders were filed against the company in two different states.
The BitConnect Scheme is not over
While all this is going on, the individuals behind BitConnect are still moving forward with their upcoming initial coin offering (ICO), known as BitconnectX. The promoters of BitconnectX are targeting individuals in southeast Asia.
As has been seen with other cryptocurrency-related Ponzi schemes, the perpetrators often simply pivot to a new scam once their original plan falls apart.