closed on 17 January.
The class action indicates that BitConnect issued cryptocurrency tokens that were in fact unregistered securities and raised additional funds through a [ large-scale Ponzi scheme . ]
The lawsuit was filed by six people on their own behalf, as well as those of all the other people who lost their money by investing in BitConnect. The six complainants stated that their personal losses amounted to $ 771,000.
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It is alleged that BitConnect guaranteed a monthly return of 40% that she promised to generate by trading funds from investors in the cryptocurrency market.
Finally, the plaintiffs claim that instead of generating the revenue via encryption, the platform used funds from new investors to meet the expectations of the ancients
Launched in February 2016, BitConnect was a community-based cryptocurrency platform that introduced its own Bitconnect cryptocurrency currency (BCC) In November 2016.
According to Coinmarketcap data, the BCC reached its peak in December 2017, when its market capitalization reached approximately $ 2.7 billion.
more late, the January 4, the State of Texas issued a cease and desist order against BitConnect for the sale of unauthorized securities, which resulted in the crash of the BCC token and the closing of the platform.