Kentucky Resident Files Latest Fraud Class Action Against Bitconnect, YouTube Promoter

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A Kentucky man has filed the latest proposed class action lawsuit against Bitconnect and an individual YouTube promoter over allegations that the defunct cryptocurrency exchange and lending platform was no more than “both a pyramid scheme and a Ponzi scheme” that scammed investors out of millions. The complaint notes that after defendants Bitconnect International PLC, Bitconnect Ltd. and Bitconnect Trading Ltd. abruptly shut down their platform, proposed class members were left with Bitconnect Coins that are “either entirely worthless or [have] significantly less value” than initially promised. The defendants, the lawsuit alleges, profited handsomely at the expense of investors, many of whom were college- or high school-aged individuals who, thanks to dozens of now-removed promotional YouTube videos posted by the individual defendant, seemingly fell for Bitconnect’s profit guarantees.

More specifically, the plaintiff charges that the defendants violated Kentucky law by offering and selling unregistered securities, with Bitconnect further violating the law by failing to register with the commonwealth as a “broker-dealer” before conducting business with proposed class members.