Second Lawsuit Hits BitConnect

January 31, 2018

A Kentucky resident Brian Paige has filed a lawsuit against BitConnect International, BitConnect LTD, Bitcoinnect Trading LTD companies and their unofficial representative Ryan Maasen.

In his lawsuit, Paige accuses the project of organizing a Ponzi scheme and demands the company to compensate his losses caused by the abrupt collapse of BCC token price. It is worthy to recall that the price of the token crashed from $435 to $6 in less than a month.

The plaintiff claims that BitConnect promised its investors a profit up to 3000% a year or up to 40% a month, which caused a surge of interest to the project among investors. However, Paige admits that BitConnect warned its investors about the there is no guarantees of returns on deposits in case of certain circumstances.

The filing states:

"Not listed is that disclosure was a risk Bitconnect could unilaterally shut down its lending platform, convert all of people’s investments into BCC, tank the market for BCC by eliminating any future value of BCC, and close up shop."

Also, the lawsuit claims that Ryan Maasen was not officially registered as a BitConnect employee, however he profited from deceiving customers. 

This lawsuit is a second one that hit Bitconnect after a class action lawsuit that was filed last week, which accuses BitConnect of issuing cryptocurrency tokens that actually are unregistered securities for fundraising thus establishing a large-scale Ponzi scheme.

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