Bitconnect Faces Lawsuit for Operating "Wide-Reaching Ponzi Scheme"

Bitconnect is facing litigation from six individuals accusing the company of operating a Ponzi scheme in addition to numerous violations of securities laws. The six plaintiffs collectively invested approximately $771,000 USD into Bitconnect, and are seeking recourse following the sudden removal of the company’s lending platform that immediately led to a more than 90% loss in the value of Bitconnect tokens.

Also Read: Not Content Scamming $1.5 Billion, Bitconnect Wants Another $500 Million for ICO

Bitconnect Receives Class-Action Lawsuit

Bitconnect Faces Lawsuit for Operating "Wide-Reaching Ponzi Scheme"The complaint has been filed by Charles Wildes, Francisco Doria, Aric Harod, Akiva Katz, James Gurry, and Ronald Nelson with the Southern District Court of Florida, and is made on behalf of all Bitconnect customers, in addition to the aforementioned plaintiffs individually.

The suit has been brought against all three corporate entities comprising the Bitconnect company, in addition to defendants “Glenn Arcaro, Trevon Brown a/k/a Trevon James, Ryan Hildreth, Craig Grant, and Cryptonick” – who are accused of aggressively recruiting new investors into the Ponzi scheme using social media.

Bitconnect Accused of Running “Wide-Reaching Ponzi Scheme”

Bitconnect Faces Lawsuit for Operating "Wide-Reaching Ponzi Scheme"The preliminary statement of the complaint describes Bitconnect as having raised “millions of dollars’ worth of cryptocurrency” through “a trading platform and lending program fraudulently promoted and operated by” the defendants.

The complaint states that “Bitconnect guaranteed investors up to a forty percent total return per month on their investments, following a four-tier investment system based on the sum of the initial deposit.” Investors were “promised Read More Here