BitConnect former investors filed a lawsuit in hopes of receiving compensation from the company.
As you know, BitConnect was closed on 17 January, after it was recognized as fraudulent by the project.
The lawsuit stated that BitConnect issued tokens that were actually unregistered securities, and has collected additional money through a “massive fraudulent scheme”.
The lawsuit was filed by six individuals who represent themselves and other persons who have lost their money by investing in BitConnect. Six plaintiffs said their losses totaled 771 000 USD.
BitConnect guaranteed 40 percent of monthly income, which he promised to generate trading investor funds in the cryptocurrency market.
Ultimately, the plaintiffs argue that instead of really generate income via cryptocurrency trading platform actually used the funds of new investors to meet the expectations of existing ones.
Established in February 2016, BitConnect was cryptocurrency platform in November 2016 presented its own cryptocurrency – Bitconnect (BCC).
According to Coinmarketcap, BCC reached the peak of its popularity in December 2017, when its market capitalization reached about $ 2.7 billion.
A few days later, on January 4, Texas issued a decree on the termination of the sale BitConnect, because the tokens were recognized as unlicensed securities that led to the collapse of token BCC and closure of the platform.