Update: Law Firm Calls on BitConnect Victims to Join Lawsuit

The law firm running the class action lawsuit against failed cryptocurrency exchange BitConnect has invited other victim to get on board.

The law firm representing the plaintiffs in the case against BitConnect and its US-based directors and promoters has called on other victims to join the class action lawsuit.

The shuttered cryptocurrency exchange and lending platform has been targeted in a suit filed by law firm Silver Miller before the United States District Court for the Southern District of Florida.

Silver Miller said in a statement:

“Any member of the putative class may move the court to serve as lead plaintiff through counsel of his/her/its choice or may choose to do nothing and remain an absent class member.  If you wish to serve as lead plaintiff in the Lawsuit, however, you must move the court no later than April 13, 2018 to appoint you as the lead plaintiff.”

The lawsuit was filed in January with six original complainants seeking $770,000 in damages from the failed digital currency exchange. BitConnect folded after its native coin, BBC, dropped to less than $10 from the previous $400 range, thus causing massive losses to its investors.

The plaintiffs are accusing BitConnect of violating various state and federal securities laws by engaging in the unregistered offering and sale of securities.

The charge sheet alleges that BitConnect International PLC, BitConnect Ltd, BitConnect Trading Ltd, and several US-based directors and affiliates/promoters operated a Ponzi scheme by hiring an “army of highly-compensated recruiters who lured in investors through social media channels -- fraudulently promoted exorbitant monthly and daily returns on investments that were actually nothing more than reallocated funds from other investors.”

The lawsuit is asking the court to withdraw all investments in BitConnect, declare BitConnect and its promoters guilty of violating multiple security laws, and order an audit on the exchange to account for all funds it raised from its investors.

BitConnect calls it quits on suspicion of running Ponzi scheme

BitConnect announced in mid-January it was shutting down its operations after receiving two cease and desist orders from the North Carolina Secretary of State Securities Division and the Texas State Securities Board.

The company added that the proliferation of bad publicity had made it difficult to do business since the cryptocurrency community lost confidence in the exchange.