Lawsuits Continue To Hit Bitconnect

Lawsuits continue to mount against the now defunct Ponzi scheme BitConnect, with the latest being the fifth class action brought forth against them in the United States. Three have been filed in Florida, as well as one each in Minnesota and Kentucky. The latest suit is much broader than the previous ones, naming various different arms of the organization as defendants. Among the defendants named are BitConnect director Glenn Arcaro and affiliate Ryan Maasen, as well as other unknown entities involved in the alleged fraud.

Last month saw a federal judge freeze BitConnect assets after a previous lawsuit was filed by people caught up in the scheme. In the wake of the closure of BitConnect's lending platform the BCC token price crashed from a high over 400 dollars to $2.90.

The plaintiffs are seeking damages against the defendants if they are successful. These damages would go towards repaying investors as well as providing for the costs of the trial and lawyers. The class action states that BitConnect issued and sold unregistered securities in Florida and committed fraud by overstating the possible returns that users who purchased the BitConnect tokens would see. The plaintiffs also alleged that the defendants violated Florida trade and securities laws, as well as securities laws in the state of Rhode Island.

It is not looking good for Bitconnect.