Another Lawsuit Filed Against Bitconnect

It seems that things are not looking that good for Bitconnect now. The company is said to be dealing with a new class action lawsuit. This is the second lawsuit filed against the company on allegations of operating a Ponzi scheme.

Class action lawsuit accuses company of operating Ponzi scheme

This class action lawsuit was filed in Kentucky by plaintiff Brian Paige on claims that the company engaged in an online investment scam.

The plaintiff also sought a restraining order. This is the second time when Bitconnect is sued on such allegations in about one week. The class action includes a total of 1,000 people and of course the class is open for more individuals to join.

The class action lawsuit was filed on January 29 in a Kentucky court. Reportedly, the company managed to scam an important number of people in Kentucky, as well as thousands of other people across the US, cheating them of important sums of money. The lawsuit indicated that people have lost millions of dollars because of Bitconnect.

According to the lawsuit, Ryan Maasen used a series of YouTube videos with the purpose to promote the company and make people believe that depositing money into Bitconnect's website would be beneficial for them. Of course, Maasen made promises of high returns, but the claims were never turned into reality. In fact, Bitconnect finally shut down after a series of investigations and cease-and-desist orders from state authorities.

The plaintiff also accused the company of operating a Ponzi scheme, saying that Bitconnect actually relied on money it obtained from new users and did not actually perform a business activity. As imagined, the plaintiff wants the company to pay damages to the class of people affected by its practices. Paige also filed a request for a restraining order for the freezing of assets.