BitConnect Lawsuits Are Piling Up In Florida

BitConnect Lawsuits Are Piling Up In Florida

Yet another lawsuit seeking class-action status has been filed in Florida against BitConnect, constituting the third legal action of its kind to be initiated in the state and the fifth overall in the U.S.

Florida residents Andrew Kline, Dusty Showers and Lena Hunt, along with Rhode Island resident Charles Mabra, filed the lawsuit in the U.S. District Court of the Middle District of Florida on Feb. 7, public records show. Additional suits have been filed in Minnesota and Kentucky.

Like the previouslawsuits filed in the past month, this one names Bitconnect’s various arms as defendants. Among the defendants cited in this instance are BitConnect director Glenn Arcaro and affiliate Ryan Maasen, as well as other unknown entities involved in the alleged Ponzi scheme.

The suit claims that BitConnect sold unregistered securities in the state and committed fraud by overstating the possible returns that users who purchased the BitConnect tokens would see. The plaintiffs also alleged that the defendants violated Florida trade and securities laws, as well as the applicable laws in Rhode Island.

The plaintiffs are seeking a jury trial, which would result in damages being levied against the defendants if they are successful. Proceeds would repay investors, as well as provide for the costs of the trial, according to the document.

Just last month, BitConnect saw its assets frozen after a previous lawsuit was filed by aggrieved investors. In the wake of the closure of BitConnect's lending platform, the price of its BCC token has fallen, tumbling from above $300 to roughly $2.90 as of press time.

In January, regulators in Texas and North Carolina moved against BitConnect ahead of a planned token sale, issuing cease-and-desist notices before the lending platform closure announcement later that month.

A full copy of the lawsuit complaint can be found below:
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Source www.coindesk.com

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