US Court Freezed BitConnect Assets

Funds freezing is the answer of second lawsuit against BitConnect
01 February 2018   81

The US court imposed a temporary ban on the accounts of the crypto project BitConnect, according to which all assets of the company should be frozen. It is 'the answer" to the second collective lawsuit filed against the company, Coindesk reports.

The resolution obliges respondents to disclose the addresses of the cryptocurrency wallets and trading accounts of BitConnect, as well as the identity of all to whom the company sent digital assets within the last 90 days.

The defendants have 10 days to execute the order. In addition, BitConnect International PLC, BitConnect LTD, BitConnect Trading LTD and Ryan Maasen are prohibited from transferring any assets without separate court authorization.

On the eve of these events, a resident of Kentucky, Brian Page sued BitConnect International, BitConnect LTD, BitConnect Trading LTD and Ryan Maasen, Oklahoma resident, who promoted the project.

Page is demanding compensation for losses to all investors who lost money after the closure of the cryptocurrency exchange and credit programs under pressure from the state regulators of Texas and North Carolina. The rate of BCC coins fell by 98.8% from the absolute maximum reached in December, and at the moment is about $ 6.

As a result, the court considered that the plaintiffs will not have a chance to recover their funds if the BitConnect assets are not frozen, and the temporary ban was imposed "in the public interest, because the public is interested in preventing mass fraud and other violations of securities laws."

$770 000 Lawsuit Filed Against Bitconnect

Each of the six plaintiffs lost $ 11,500 to $ 200,000 
25 January 2018   175

On Wednesday, a lawsuit was filed in the court of the southern federal district of Florida against the BitConnect. Plaintiffs assert that the organizers of the scheme fraudulently seized the amount exceeding $ 770,000. This is reported by The Next Web.

The plaintiffs were six former BitConnect investors who, in their statement, indicated several branches of the company registered in the UK, as well as several promoters engaged in promoting the investment scheme at YouTube and through various social channels.

Among the others in the suit is Glenn Arcaro, who, according to the register of UK companies, is the director of BitConnect. Besides him, the names of Trevon Brown (better known as Trevon James), Ryan Hildreth, Craig Grant, John Doe (known by the name of CryptoNick) and others appear in the document.

Sure enough, the crypto-Wonderland created by BitConnect was too good to be real. As the business’ closure in January 2018 revealed a Ponzi scheme, numerous securities laws violations, and thousands upon thousands of investors who lost [more than] 90 percent of their holdings.
 

Lawsuit against Bitconnect

Bitconnect Investors
Each of the six plaintiffs lost $ 11,500 to $ 200,000 

Plaintiffs and Class Members seek compensatory and equitable relief rescinding their investments in BitConnect and restoring them the assets and funds they were fraudulently induced into investing.
 

Lawsuit against Bitconnect

In addition to the plaintiffs themselves, the application mentions "Class Members", that is all BitConnect investors, with the exception of the defendants and related persons who had a commercial interest in the activities of the defendants. All investors who meet this criterion can join the claim.

It is noteworthy that some of the promoters mentioned in the suit, including Arkaro and Hildreth from YouTube, hastened to remove all compromising videos from their YouTube channels after the first rulings of the US authorities were passed.

Meanwhile, BitConnect continues to raise funds to finance its ICO BitconnectX, promoted by an army of promoters in Indonesia and Asia.