There’s been talk of a class-action lawsuit for a few days now, with one finally filed in the Southern District of Florida on January 24th.

In the fifty-page lawsuit, BitConnect victims Charles Wildes, Fransico Doria, Aric Harols, Akiva Katz, James Gurry and Ronald Nelson seek to recover $771,000 in losses.

They hope to do this via a class-action against defendants BitConnect and top investors Glenn Arcaro, Trevon Brown (aka Trevon James), Ryan Hildreth, Craig Grant and CryptoNick (John Doe No. 1).

The lawsuit, filed through the firm Silver Miller, alleges
BitConnect’s collapse earlier this month
revealed

a Ponzi scheme, numerous securities laws violations, and thousands upon thousand of investors who lost 90+% of their holdings at BitConnect.

BitConnect’s business model
is described as guaranteeing a monthly 40% ROI.

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 of the fluctuating price of cryptocurrency.

Moreover, regardless of the amount of the initial investment, each investor was promised a one percent 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 would turn a $1000 investment into a $50 million return within three years of daily compounded interest.

Following BitConnect’s collapse, BCC points public value plummeted by 90%.

Trading at over $400 in early January prior to the collapse, today BCC is worth just $12.98.

Glenn Arcaro, Trevon James, Ryan Hildreth, Craig Grant and CryptoNick are cited as “prominent BitConnect affiliates”, who along with the company itself, are responsible for investor losses.

Glenn Arcaro is particularly singled out as an active Director, top-level executive and “controlling person” of BitConnect.

Class representational has been sought on behalf of BitConnect investors, split into a nationwide class and Florida subclass.

BitConnect and its top YouTube promoters are accused of multiple violations of the law across twelve counts of action, including;

the unregistered offer and sale of securities in violation of the Securities Act

fraud in the offer and sale of securities in violation of the Securities Act

rescission of contract

the unregistered offer and sale of securities in violation of Florida’s Statutes and Constitution

fraud in the offer and sale of securities in violation of Florida’s Statutes and Constitution

violation of Florida’s Deceptive and Unfair Trade Practices Act

fraudulent inducement

fraudulent misrepresentation

negligent misrepresentation

conversion and

civil conspiracy

The class-action lawsuit seeks

to recover investor losses from BitConnect and its top promoters (both in fiat and cryptocurrency)

an award of any additional damages recoverable under law.

an order prohibiting BitConnect and its top promoters from transferring or

🤖 Quick Answer

What was the BitConnect class-action lawsuit about?
A class-action lawsuit was filed in the Southern District of Florida on January 24th by six BitConnect victims seeking to recover $771,000 in losses. The lawsuit alleged that BitConnect operated as a Ponzi scheme, violated securities laws, and caused thousands of investors to lose over 90% of their holdings following the platform's collapse.

Who were the defendants named in the BitConnect lawsuit?
The defendants included BitConnect and several top investors: Glenn Arcaro, Trevon Brown (also known as Trevon James), Ryan Hildreth, Craig Grant, and an individual identified as CryptoNick (John Doe No. 1), who allegedly promoted the platform to investors.

How many victims were named as plaintiffs in the BitConnect case?
Six victims were named as plaintiffs: Charles Wildes, Francisco

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