Investors have filed a class action lawsuit against BitConnect yesterday, January 24th, 2018. I have read the document and will be covering some of the major points, but if you want to read over it yourself, I will have the link posted at the end of this article. Basically, some investors who took major losses filed the lawsuit to sue not only Bitconnect, but youtubers who pushed it. Trevon James, Glenn Craig and Cryptonick are amongst the youtubers being sued for damages and equitable relief. The 6 people who initiated this lawsuit have lost considerable amounts of money with Bitconnect. This is a screen cap from the lawsuit's document itself:
The document goes on to explain how BitConnect investments were securities by definition, but were not registered with the government regulator as required by state and federal law. Which is why they were being investigated in Texas a couple days prior to the lending platform shut down. This is a quote from Bitconnect directly in regards to the lending platform shutdown:
Source: Bitconnet.co
The document goes further to say that by law, only registered dealers and agents can be paid in commission for the referrals or sales of a security and that any affiliates, such as youtubers, that were paid in commission (Paid by BCC tokens), are in violation of state and federal law unless they were registered with the state. It also states that because the returns on investment from Bitconnect were not legitimately generated, but paid back from the investments of new investors into the company, it fits the category of a Ponzi scheme. Furthermore, it reveals the the securities of Bitconnect were not registered with the state and federal regulator, and that Bitconnect itself is not a registered dealer/sales company for securities. Which is in violation of state and federal laws as well.
This is a screen cap of the emergency cease and desist Texas issued Bitconnect:
The class-action lawsuit is open for anyone who invested in Bitconnect between November 15th, 2017 and January 17th, 2018. If you wish to be involved in this, you will need to contact Silver Miller Law in Florida:
Coral Springs, Florida 33065
Phone: (954) 516-6000
Bitconnect is being sued for 12 different violations of the law, as outlined towards the end of the lawsuit I'll have posted below. While it is being handled by the state of Florida, this is a nation-wide class-action. So even if you don't live in the state of Florida, you're still eligible for this. Simply contact the Silver Miller Law Firm listed above, and tell them you invested in Bitconnect and would like to know more about the pending class-action lawsuit. You might not be able to recover all of your losses, but with this, you should be able to recover some. It's about time Bitconnect is held accountable.
The plaintiffs suing Bitconnect have requested a trial by jury for this, which I have a feeling will work in their favor. They are requesting restitution to recover everyone's entire investments and losses, plus the attorney fees. Here is where you can find the lawsuit. I didn't cover everything that's in it, because there is a lot. But I did touch on some of the more major points. Feel free to give it a read over in your spare time. They have a really strong case, with a good bit of evidence against Bitconnect.
Leave a comment below and tell me what you think about this. Did you invest into Bitconnect and take a loss? Do you plan to pursue this class-action lawsuit to potentially recover your losses? How do you think this will end? I'd love to discuss it more with you guys. And as always, feel free to restreem this and leave an upvote. I am always and forever grateful for them!
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They may have found the promoters to be "somewhat" guilty, but I can't see how the "Bitconnect" company as a whole a shell in the UK would be hit with anything valid.
The owners if they're here in the States can be trialed. The real question is, how much do they have left if any to repay anyone? From past funds recovered from ponzi schemes I would say there is most likely not much left.
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Yea, I highly doubt they are still in the US, and it's like you said. That money is long gone and won't be recovered. There have been other class action lawsuits around crypto in the past, and most of them saw nothing come from it. I'm just glad I had that 'off' feeling about bitconnect and never got involved with it
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