Bitconnect is being sued yet again, according to a document filed today with the US District Court of Northern California. This lawsuit, to the best of our knowledge, is the sixth brought against the company since its abrupt closure in mid-January.
On its face a crypto exchange and lending venture, Bitconnect was widely considered—even among the often pie eyed digital token enthusiast communities—to be a Ponzi scheme. Supposedly guaranteed returns at unusually high rates triggered alarm bells for some would be investors, and even drew strong skepticism from Ethereum founder Vitalik Buterin. And yet, the suckers came running with cash in hand to fork over to Bitconnect’s anonymous founders.
In early January North Carolina and Texas security divisions both sent out cease and desist orders less than a week apart, with the latter accusing Bitconnect of engaging in fraud outright. Shortly thereafter Bitconnect shut down operations after approximately a year in business, tanking the value of the proprietary digital token held by investors in their staking program.
Filed by one Baltazar Avalos, this most recent class-action suit alleges, among other chargers, that Bitconnect and its principles engaged in breach of contract, fraud, and unjust enrichment, among other untoward practices. Though we can’t be sure it’s the same individual, there was only one relevant post from someone using this name prior to this filing, left in the comments of a site called Consider The Consumer on February 4. All it said was “How to file lawsuit against bitconnect?” Guess he figured it out.
The suit can be read below in its entirety.