Six Former Investors Sue BitConnect Over $700k LossJan 26, 2018 at 13:22
Recently shuttered BitConnect was brought to court by six former investors who alleged the cryptocurrency trading platform stole more than $700,000 from them.
A class action complaint was filed with the a US District Court in West Palm Beach, Florida by six individuals who are seeking repayment of funds lost as well as additional damages and pre- and post-judgment interests.
The six individuals have invested between $11,500 and $200,000 for a total of $771,000.
The lawsuit detailed that BitConnect guaranteed investors of up to a 40 percent total return per month on their investments and a one percent return on a daily basis, no matter how much was initially invested.
Apart from BitConnect, the lawsuit also named affiliate marketers, namely Glenn Arcaro, Trevon Brown aka Trevon James, Ryan Hildreth, Craig Grant and Crytonick, who promoted the service on social media and other channels to recruit more investors.
BitConnect, branded as a ponzi scheme, has closed down its lending and exchange platform earlier this month.
This was due to continuous bad press, which made community members uneasy and created a lack of confidence in the platform, the company said.
Prior to this, BitConnect had been served two cease and desist orders from the Texas State Securities Board and from the North Carolina Secretary of State Securities Division.