New Lawsuit Against BitConnect Scam Project Combines Previous Complaints
Several complaints against the creators of the crypto scam project BitConnect were merged into a new big lawsuit. The case includes six previous lawsuits, to which lawyers added new complaints against the BitConnect team members. The suspects are charged with using fraudulent cryptocurrency schemes.
The case cites the names of more than 40 individuals and several companies related to the BitConnect illegal activity. Among them, there are the startup owners, as well as promoters and other team members who have not yet been involved in the lawsuit.
The largest video hosting YouTube is among the defendants as well. In July 2018, the service was sued for broadcasting over 70 thousand hours of the BitConnect promotion content.
Such a large-scale case was issued at the initiative of the US District Court for the Southern District of Florida. The consolidated lawsuit insists on a jury trial and requires from the defendants to return the deposits to investors. Also the complaint provides for compensations to the victims of the fraud schemes.
The BitConnect startup closed its exchange platform in early 2018, following the order of US regulators. The firm was accused of selling unregistered securities by means of the ICO. After that, the BCC token rate dropped from $400 to less than $20, and investors started filing complaints to recover losses.
The US authorities also insist on confiscation of the property owned by the BitConnect representatives.
Previously, US regulators suspended the work of the bitcoin company 1Broker due to alleged law violations.