Investors File Class Action Suit against Bitconnect
The recently shuttered cryptocurrency lending and exchange platform BitConnect has been hit with a class action lawsuit from six investors claiming losses exceeding $770,000.
All BitConnect investors who suffered losses resulting from the company’s activities and platform closure are entitled to join the lawsuit as Class Members. The complaint lists BitConnect’s three corporate entities in the UK and fourteen individuals, including ten of unknown names, as defendants. The individuals include California-based Glenn Arcaro, the director of BitConnect International PLC, and prominent affiliates and recruiters promoting BitConnect on social media platforms such as Youtube and Facebook.
BitConnect, widely suspected in the crypto-space of being little more than a Ponzi scheme, allowed investors to lend money to BitConnect, which the company would then use to trade in the volatile cryptocurrency market using advanced trading software. It promised investors 40% returns per month and 1% returns per day, regardless of market conditions.