BitConnect accused of extorting victims out of $770,000 in class action lawsuit | finder.com

BitConnect accused of extorting victims out of $770,000 in class action lawsuit

Kyle Torpey 25 January 2018 NEWS

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.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Picture: Shutterstock

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Go to site