Youtube has been included in the class action lawsuit against BitConnect, the collapsed Crypto lending platform that has been accused of fraud.
Class Action Lawsuit Against YouTube
The lawsuit, which was filed at the Florida Southern District Court, has named YouTube as a co-defendant in the lawsuit against BitConnect. YouTube has been accused of failing to protect its users against the scam’s videos. According to the documents, YouTube, which is a Google-owned platform, also failed to warn its users against the Crypto lending platform’s promotional material which ended up garnering over 58 million views and totaled 70,000 hours on YouTube.
The court documents state that YouTube was in partnership with several of BitConnect’s affiliate promoters who were guilty of then providing fraudulent information to unwitting victims all over the world. The documents further state that through this action, YouTube acted negligently in not warning its viewers of the harmful content that these affiliates were disseminating, content which it is alleged YouTube compensated the content producers for.
The document goes further to say that through YouTube’s negligence, tens of thousands of unsuspecting individuals were defrauded by BitConnect. This was through, the document alleges, taking advantage of the general popularity that Cryptocurrencies are enjoying in the public domain to lure the public into buying securities which are unregistered and taking part in Ponzi schemes.
Carefully Instigated Ponzi Scheme
The original lawsuit was filed on behalf of BitConnect’s victims. The complainants, Charles Wildes, Francisco Doria, Akiva Katz, James Gurry, Aric Harod and Ronald Nelson, accused BitConnect of building its market capitalization that was formally worth $2.5 billion, through fraudulent methods. They further accused BitConnect of creating a Ponzi scheme, which they then used to defraud unsuspecting investors, and employing social media agents to reel into the fraud more victims. The lawsuit also accuses the Crypto lending platform of making a mockery of the state and federal laws.
The Backlash After The Close Of BitConnect
After news of the closing down of BitConnect went public, many people publicly chastised YouTubers for promoting and encouraging the use of the platform. Many were quick to cast blame on various entities even though talks of BitConnect being a scam were rife in the Crypto sphere.
Signs It Is A Crypto Scam
1. Fee – a Crypto scam will usually ask for a fee to join the scheme. This may be masked as cloud mining down payment, sponsorship, etc.
2. Huge return on investment – a Crypto Ponzi scheme promises a huge consistent return on investment without any accompanying risk.
3. Referral schemes – the most telltale sign of a Crypto Ponzi scheme is it will always have a referral program. If the Cryptocurrency requires you to refer others for a reward, then the business model may not be genuine.
4. Inactive community – a when you check the website of the Cryptocurrency, there will be a large community that is largely dormant with very few engagements.
5. Reviews – there will always be a negative mention or reviews among the many praises a scam Cryptocurrency is flooded by. Each negative mention and review deserves a second glance, to see what exactly people are saying about the Cryptocurrency.