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Class Action Suit Combines Previous Cases Filed Against Bitconnect

Class Action Suit Combines Previous Cases Filed Against Bitconnect

The recent troubles of BitConnect platform have once again sprouted up massively after a Class Action suit was filed in U.S District Court in Southern District of Florida.

This time round BitConnect will have to answers to allegations of running a Ponzi scheme. Furthermore, all the cases previously filed in the court will be consolidated into one single legal battle. At the center of it all is attorney David Silver who is the Class Counsel representing investors from Silver Law firm.

How BitConnect Troubles Started

January 2018 to many crypto enthusiasts was to be a good year for making investments after the boom brought forth by Bitcoin prices. But for BitConnect it was a bad month. The platform had to shut down after receiving an order from two securities regulators to close down. The two regulators were North Carolina and Texas securities authorities. In their order, the regulators claimed BitConnect was offering its tokens illegally since it’s an unregistered entity. With no other choice, BitConnect had to adhere and close down. The order culminated to more problems as the token prices fell to less than $20 from 400 US dollars.

Further on the platform was slapped with a lawsuit after lawsuit with its investors looking to get their funds back. From these lawsuits, we now have one class action suit consolidating all the other cases. Furthermore, this time around even promoters have been sued.

While responding to questions from CoinDesk via email lead Counsel, David Silver said;

“After gathering more information we have discovered that more individuals were involved in the Ponzi scheme. In that case, the Amended Class Action Suit seeks to bring to light all the promoters, founders and other participants. Taking into account the significant amount of money investors lost within that short time, we are hoping the court will fast-track the whole process. Through the suit, we hope many people will be held accountable and money refunded.”

Among the defendants in the class action are promoters who pushed BitConnect agenda through their platform. Some of the promoters are Trevon James and Divyesh Darji BitConnect India’s head. Further on YouTube is also among the defendants in the class action suit. Although it was sued back in July for allowing BitConnect to promote its platform attorney Silver included it in his current lawsuit.

In total 40 individuals are listed as defendants alongside BitConnect Trading Ltd, BitConnect Ltd, BitConnect International PLC, and BitConnect Public Limited.