bitconnect hit with 2nd lawsuit....
A new lawsuit has been filed in connection with the controversial BitConnect cryptocurrency investment scheme, the second such case to be filed in the past month.
The lawsuit, filed on behalf of Kentucky resident Brian Page, names BitConnect International, BitConnect LTD, Bitcoinnect Trading LTD and Ryan Maasen as defendants.
Submitted on Monday, Page is seeking to recoup losses incurred when the price of BitConnect’s token (BCC) tanked following the news that the exchange was shutting down its lending and exchange platform. As of press time, the BCC token is trading at roughly $6.20, representing a significant plunge given that it traded above $300 a month ago.
In the suit, Page accuses BitConnect of operating a Ponzi scheme, noting that investors were required to transfer their cryptocurrencies to the exchange in return for BCC tokens, which would then act as the primary investment.
Page cited BitConnect’s claims that it would provide a 3,000 percent return over the course of a year or a monthly return of 40 percent as reasons why investors would use BitConnect.
While Page acknowledges that BitConnect includes a disclosure that investors may not see a return on their deposits, the disclosure does outline various reasons why this may happen.
The filing continued:
"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."
The suit also claims that Ryan Maasen, an Oklahoma resident, acted as an unregistered agent for BitConnect, and had profited from misleading investors about the potential returns they would see.
Unlike the previous legal filing, submitted in Florida by the law firm Silver Miller, Page's suit limits itself to the companies associated with BitConnect and Maasen. Still, both lawsuits were filed in an effort to seek recompense for every investor who lost money in BitConnect.!
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