Bitconnect suffers a second lawsuit case

Controversial cryptocurrency investment scheme is to recoup customer’s losses
30 January 2018   178

A lawsuit, second in a row for the past month, was submitted by a Kentucky resident Brian Page in connection with BitConnect. As the news of the platform shutting down hit the Internet, the price of BCC plunged that resulted in customers’ losses. Mr. Page with the lawsuit is trying to recoup his losses. The accusations are that BitConnect is operating a Ponzi scheme as BitConnect claimed to to provide a monthly return of 40 percent.

The suit also concerns an Oklahoma resident Ryan Massen. It is said that Mr. Maasen acted as an unregistered agent for BitConnect, and used the misleading potential of returns to profit from fooled investors.

This lawsuit however limits itself to the companies only associated with BitConnect and Mr. Maasen.

Twitter reactions are malevolent and somewhat righteous:

@Rellsince86 said «Funny how all these Bitconnect guys keep deleting videos but then also saying «I didn’t do anything wrong» lol we shall see what happens».

@rocco8081 said «These people are going to screw up the entire market because they could not think for themselves! These individual people suing should have never invested in the first place».

@loudcrypto3 said «When will people learn!?! Do your research!».

@evstigneeff said “«Yeah! All "lending" crap should get sued!!!».

SEC Suspends Trading in 3 Companies

On Friday The U.S. Securities and Exchange Commission temporarily suspended the trading of three companies as they made the purchase of cryptocurrency and blockchain-related assets
17 February 2018   121

According to the announcement, the trade of  Cherubim Investments, Inc., PDX Partners, Inc., and Victura Construction Group, Inc. will be suspended between 9:30 a.m. EST Friday and March 2. The notice was dated Feb. 15.

SEC stated that its trading suspension orders state that recent press releases issued by CHIT, PDXP, and VICT claimed that the companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things.

The release also indicates additional reasons for the suspensions. The agency’s orders also say there are questions regarding the nature of the company's business operations. In case of CHIT, the Commission suspended trading in the securities because of its delinquency in filing annual and quarterly reports.

In August 2017, the SEC  issued a warning for investors about the companies that may publicly announce ICO or coin-related events to affect the price of the company’s common stock.

Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. 

U.S. Securities and Exchange Commission