Silver Miller Files Class Action Lawsuit against BitConnect and its U.S.- Based Directors and Promoters
January 24, 2018 | Back to News
Silver Miller — the leading cryptocurrency investor law firm in the country, with actions currently pending against the Kraken, and Cryptsy exchanges — has filed a new federal court class action lawsuit against yet another bad actor in the cryptocurrency exchange world: BitConnect. BitConnect has long faced allegations that it was, essentially, a Ponzi scheme. As more evidence has been uncovered in the past week those allegations have apparently been proven true. BitConnect has essentially ceased operation of its exchange and lending platform, and BitConnect investors have suffered a 90+% loss on their holdings at the exchange.
According to Bloomberg, BitConnect’s proprietary BCC token was one of the twenty most successful cryptocurrencies in 2017. In mid-January 2018, BitConnect boasted a market cap of over $2.5 billion. However, that purported fortune appears to have been built through the use of fraudulent means and a wide-reaching Ponzi scheme that defrauded investors, made a mockery of state and federal securities laws, and employed an army of social media mercenaries who were paid to bring more unsuspecting victims into the fraud. Citing bad press related to two cease-and-desist letters from the Texas and North Carolina securities authorities and alleged malfunctions with its software, BitConnect shuttered its operations on January 17, 2018 and left its customers with little more than BitConnect’s virtually worthless virtual currency.
For educated investors, signs of a Ponzi scheme were apparent from the beginning. BitConnect guaranteed investors up to a forty percent (40%) total return per month on their investments, following a four-tier investment system based on the sum of the initial deposit. The more money an investor put down, the greater the return that investor could purportedly receive each month over a scheduled period of time — regardless of market performance or the fluctuating price of cryptocurrency. Moreover, regardless of the amount of the initial investment, each investor was promised a one percent (1%) return on investment on a daily basis, which BitConnect purported would be generated by its own proprietary trading bot and volatility software — a promise that purportedly would turn a $1,000 investment into a $50 million return within three years of daily compounded interest. Those bold assertions appear to have been false from the day they were made, though many investors are only now learning the truth behind BitConnect’s operations.
Silver Miller continues to be a strong advocate for aggrieved cryptocurrency investors harmed by the misrepresentations and illegal actions of digital asset exchanges, trading platforms, and ICO promoters. If you have invested in an ICO and are concerned that your investment is in jeopardy or that you have been defrauded, contact Silver Miller for a no-cost, no-obligation consultation to discuss your legal rights.
See the Class Action Complaint:
Wildes, et al. v. Bitconnect International, et al.
