BitConnect Legal Issues Continue as Lawsuits Are Consolidated Into Class Action


Multiple Lawsuits Bond Together As Massive Joint Legal Effort Against BitConnect

BitConnect has unfortunately been the subject of about half a dozen lawsuits, as multiple allegations have arisen about their potentially fraudulent cryptocurrency endeavor. The documents for the court were filed last week on Thursday, and now is classified as an Amended Consolidated Class Action Complaint. The documents indicate that the paperwork has been filed in the U.S. District Court for the Southern District of Florida.

This class action is coming in months after the shutdown of the BitConnect, after which the BCC’s token price followed. David Silver, the attorney from Silver Miller that is representing BitConnect, confirmed that all of the lawsuits were combined to this single complaint. He also confirmed that his firm is the Class Counsel in the new lawsuit, which now names owners and promoters within BitConnect that hadn’t been included in any of the lawsuits before now.

Silver explained,

“As more information has become available, we have learned about more individuals involved in the rampant fraud associated with BitConnect.”

He also said,

“The Amended Consolidated Class Action Complaint highlights those actors who participated in the creation of BitConnect and the promoters of BitConnect. The amount of fraud, and the amount of investment loss in such a short period of time is staggering. We hope to move the lawsuit along as fast as possible and hold as many people accountable both in the United States and abroad.”

Based on the evidence and information provided, BitConnect is potentially liable for at least 22 different legal violations, though the case will also review the history of BitConnect and what it actually was. The platform itself was shut down in January, right after a number of cease-and-desist orders from securities regulators in both Texas and North Carolina. The orders came with the claims that they were pursuing their initial coin offering without registered securities.

As a result of the claims, the BCC token failed, going from $400 to under $20 right at the beginning of 2018. The significant loss brought on more lawsuits, primarily from investors that believed that they were owed some kind of restitution for their losses, based on allegations of fraud and securities sale laws.

Within this combined lawsuit, the entities being charged are:

  • BitConnect Public Limited
  • BitConnect International PLC
  • BitConnect Ltd
  • BitConnect Trading Ltd

Along with these specific areas of interest, there are 40 affiliated individuals named as well, like the head of the India sector Divyesh Darji and promoter Trevon James. The lawsuit also added YouTube to the list of defendants, due to their decision to allow 70,000 hours of content to be posted from BitConnect.

Part of the lawsuit is that there must be a jury trial, which is seeking rescission for the plaintiffs, along with compensatory damages. Silver ultimately said that the best result would be “that all of the money is returned to the investors in BitConnect.

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