A BitConnect fraud lawsuit is falling apart. Judge Middlebrooks just tossed out the second amended complaint and removed another batch of defendants, marking the latest collapse in what was supposed to be a sweeping class-action against the cryptocurrency Ponzi scheme.

The November 20th order came down hard. It eliminated the remainder of the second amended complaint, filed back in September. Defendants Glenn Arcaro and Ryan Maasen had already been kicked out months earlier. Now Joshua Jeppesen, Craig Grant, and Nicholoa Trovato—known online as CryptoNick—joined them on the dismissal list.

The plaintiffs argued these three defendants "are believed to have fled their homes to escape criminal prosecution." The judge wasn't moved. Under Federal Rules of Civil Procedure, plaintiffs get ninety days to serve defendants. Filing an amended complaint doesn't reset that clock.

Judge Middlebrooks gave the plaintiffs until December 5th to file yet another version of their complaint. The catch: no new defendants, no new allegations. The remaining defendants in the lawsuit are mostly based overseas, making service nearly impossible.

This isn't looking good. The time spent chasing these defendants has dragged on for years since BitConnect's criminal investigation became public knowledge. At some point, expect this civil lawsuit to vanish entirely. Whether federal regulators ever actually prosecute anyone remains an open question.

The January 2020 update made things worse. On December 20th, the court denied a request to serve defendants through alternative methods. That same day, Judge Middlebrooks tossed out three more defendants: Calen Powell (Crypto Clover), Thomas Allan Atherton, and Jean-Simon Labreche. The judge signaled he's eyeing dismissals for Trevon James, Ryan Hildreth, and Tanner Fox next.

The plaintiffs filed a response on December 30th, pushing back hard. They argued each defendant "is responsible for having caused damage to Plaintiffs and the putative class of investors in BitConnect securities." They noted that one defendant had already admitted the allegations against him were true. They warned that "prematurely dismissing these defendants from this action would unjustifiably deny Plaintiffs their ability to pursue their claims for relief."

As of publication, the judge hadn't ruled on that motion. The lawsuit hangs in limbo, stripped down to almost nothing, with few defendants left standing and the plaintiffs racing against the clock to salvage what's left of their case.

🤖 Quick Answer

What is the status of the BitConnect class-action lawsuit?
The BitConnect fraud lawsuit has significantly weakened following Judge Middlebrooks' November 20th order, which dismissed the second amended complaint and removed multiple defendants including Joshua Jeppesen, Craig Grant, and Nicholas Trovato. Previous defendants Glenn Arcaro and Ryan Maasen had already been dismissed months earlier, further dismantling the class-action against the cryptocurrency Ponzi scheme.

Why were the defendants removed from the BitConnect case?
The judge dismissed the defendants despite plaintiffs' arguments that they had fled their homes to escape criminal prosecution. The dismissals were based on Federal Rules of Civil Procedure requirements, which the plaintiffs failed to satisfy in their amended complaint, leading to the elimination of remaining claims against these individuals.

🔗 Related Articles

- Class-action filing alleges BitConnect defendants on run from law
- Seventh BitConnect class-action voluntarily dismissed (California)
- Seventh BitConnect lawsuit filed in California ($110,000 in losses)
- TRO sought against BitConnect and YouTube promoter defendants
- BitConnect class-action lawsuit filed over $771,000 in losses