A lot of people are glad to see BitConnect die a slow and painful death. The notorious Ponzi Scheme has been a stain on the cryptocurrency industry for some time now. It seems the company now faces legal action due to the operation and the nature of their investment program. Six plaintiffs have filed litigation against the company, its representatives, and two YouTube promotes. It will be interesting to see how that situation plays out. Rest assured this is not the last we hear about this scam either.

It is good to see Bitconnect face legal action. This has been long overdue for this notorious scam project. Investors have been defrauded from day one, even though a few people actually made money. Six of the company’s investors filed a class-action lawsuit this week. It is evident these individuals don’t take kindly to the company and the people responsible for promoting it. Especially two notorious YouTube stars will find themselves in a lot of trouble once everything’s said and done.

More Legal Worries for Bitconnect

The six plaintiffs represent a combined investment of $771,000. Since all of them lost close to 90% of their investment last week, they seek compensation. It is highly unlikely that will happen without taking Bitconnect to court, though. After all, the Ponzi Scheme collapsed entirely and the people responsible are long gone. A class-action lawsuit may have some favorable outcome in the long run, though. Moreover, it sets a precedent for other victims of this scam to follow. With sufficient support from victims, the company will face some form of justice in the end.

Moreover, the lawsuit itself is pretty interesting. It is brought against all three corporate entities associated with this Ponzi Scheme. Moreover, there are five names pointed out specifically as part of this lawsuit. Especially the individual known as Cryptonick will have some explaining to do in this regard. All of the names individuals aggressively recruited new investors. They did so while knowing BitConnect was bound to implode sooner or later. It shows a clear intent to defraud investors, which is a criminal offense.

With both the Bitconnect lending and exchange platforms out of the picture, things aren’t looking great. It is unclear if there will be any compensation for defrauded investors. The company has been in hot legal waters before. Several cause-and-deist notifications were sent out by various regulators. Eventually, the company caved under the legal pressure and took off with the investors’ money. We can only hope the investors get what they are hoping for. Moreover, all of the associates of this Ponzi Scheme deserve to rot in jail.

Header image courtesy of Shutterstock

About JP Buntinx

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.




Source link