The Southern District of Florida has received a class action lawsuit against BitConnect, a platform that recently collapsed after being singled out as a potential scam.

The lawsuit requires that $770,000 allegedly cheated out of the platform's users. Six BitConnect investors point to a number of UK-registered agencies and private developers who advertised the fraudulent scheme through social networks.

Glenn Arcaro is one of the defendants. Arcaro holds a management position in the company, according to the British Companies House. They also sue Trevon Brown, known as Trevon James on social networking sites, Ryan Hildreth, John Doe, known as CryptoNickk, Craig Grant and others that are not mentioned.

Particularly two promoters of the scheme, Arcaro and Hildreth, deleted their YouTube channels and their respective videos as soon as they learned of the first lawsuit against BitConnect, filed with the Texas and North Carolina financial authorities. In a hilarious and unconventional way, the document begins with part of the lyrics of the song Welcome to Wonderland, from the play Wonderland.

According to the demand, the losses of the injured parties range from $11,500 to $200,000. With this collective action they seek compensation in this respect, since they would have been motivated to invest in the fraudulent scheme. In addition, the lawsuit allows other individuals who wish to be involved in this lawsuit to do so.

Despite the fact that the scheme has closed its doors and is now considered by many to be truly fraudulent, BitConnect continues to invest in the BitconnectX ICO. This time, its promoters are focused on publicizing the round of fundraising among new investors based in Indonesia and some Asian countries where they may not be very alert.

"In mid-January 2018, BitConnect reached a market capitalization of $2.5 billion dollars. However, this fortune seems to have been made from fraudulent means and a far-reaching Ponzi scheme that defrauded investors, made federal and state laws a mockery, and employed an army of social networking mercenaries who were paid to lure more victims into this scam."

It was only last week that the BitConnect exchange house was announced to close, which undoubtedly confirmed the certainties of many who claimed that this is a fraudulent scheme. The company stated at the time that it would move into news and education, as well as begin providing portfolio services.

With the huge amount of cryptocurrencies and blockchain assets that have been released over the last two years, it is very difficult to distinguish between those that are reliable and those that are unreliable. Before you make any investment, research the projects carefully to determine if your capital will be protected in unknown hands. It is likely that those that offer very high rates of return in a very short time are promises that are too good to be true.