Some of you may remember the BitConnect scam which arose during the cryptocurrency boom at the end of 2017. Well BitConnect was eventually handed a cease and desist letter on 8th January, 2018 from the Texas Securities Commissioner for selling unlicensed securities. The BitConnect website was subsequently shut down and the price of BitConnect plummeted causing huge losses for many who had been lured into the Ponzi scheme. A number of class action lawsuit’s have since been filed and now YouTube have been accused of negligence in the ongoing BitConnect Lawsuit.
What was Bitconnect
BitConnect was a platform which allowed users to invest bitcoin, with the promise of earning daily interest on their bitcoin as well as a referral scheme in which you would earn interest on the interest earned by your referrals. For some time the platform did actually payout the interest, however, your initial investment needed to be locked away. Eventually this was no longer sustainable and the cease and desist letter was the final nail in the coffin.
Since bit connect has been shut down a number of class action law suits have been filed. American citizens from Florida, Texas, Kentucky, and North Carolina have filed BitConnect lawsuit’s. It is believed that a number of citizens have filed a lawsuit together for their collective losses totalling over $770,000.
A US court has now frozen BitConnect’s assets which saw the value of the BitConnect token fall from $300 to below $3 A number of the main influencers of BitConnect are being investigated, including; Trevon James, Cryptonick and Craig Grant. All of whom are youtube influencers and held a significant sum of BitConnect and bitcoin. Cryptonick deleted all of his content while the others continue to post videos and are still believed to hold significant amounts of Bitcoin and other cryptocurrencies.
YouTube have been accused of negligence
In yet another turn in the BitConnect lawsuit, YouTube have been accuse of negligence in the ongoing lawsuit.
Fault has been placed on the digital media giants owned by Google, for not policing the content on their website, in particular the promotional videos by BitConnect and some of the more popular influencers and named above. It was stated that the top 10 most popular BitConnect affilliates “published over 70,000 hours of unedited content, generating 58,000,000 views and luring hundreds if not hundreds of thousands of victims.”
“By enacting policies designed to prevent bad actors (such as those soliciting investments in fraudulent Ponzi schemes) from disseminating harmful, offensive or inappropriate content through its platform, YouTube owed, by its own assumption, Plaintiffs and the Class a duty to reasonable care to prevent such content from harming its users.”
Google have since banned all cryptocurrency adverts along with Facebook, however it is unknown wether or not this is the cause of the resulting ban. Wether or not YouTube will be found guilty of negligence is yet to be seen. We will be sure to keep you updated on the story. Don’t forget to join our official Telegram channel to get live updates and track the progress of our cryptocurrency portfolio