• NOW

Youtube Dragged Into Bitconnect Class Action Lawsuit for Failure to Protect Victims

Youtube has been dragged into a class action lawsuit against Bitconnect for failure to protect its users from being exposed to the scam’s videos. This case might be used by Google and others to justify their bans on crypto ads, arguing that their algorithms can not distinguish between legitimate projects and frauds.  

Also Read: No Insider Trading, Market Manipulation and Misleading Ads – Malta’s New Crypto Law

Youtube to Blame for Bitconnect?

Youtube Dragged Into Bitconnect Class Action Lawsuit for Failure to Protect VictimsYoutube has been added as a defendant in a class action lawsuit against Bitconnect recently, evident by publicly available documents filed with the Southern District Court of Florida. According to the lawsuit, the Google-owned video platform failed to protect or warn its users from Bitconnect affiliates’ promotional material, which reached over 70,000 hours and 58 million views on Youtube.

“Several of the Affiliate Promoter Defendants had partnerships with YOUTUBE pursuant to which the BITCONNECT Defendants disseminated fraudulent and harmful content unsuspecting victims across the globe. YOUTUBE was negligent in failing to warn those victims of the harmful content for which YOUTUBE compensated their creators and publishers,” the document alleges. Another segment reads: ”In short, aided by YOUTUBE’s negligent failure to warn, the BITCONNECT Defendants defrauded tens of thousands of investors by capitalizing on the general public’s excitement for virtual currencies and by luring unsuspecting investors into purchasing unregistered securities and participating in pyramid/Ponzi schemes.”

Youtube Dragged Into Bitconnect Class Action Lawsuit for Failure to Protect Victims

“Wide-Reaching Ponzi Scheme”

Youtube Dragged Into Bitconnect Class Action Lawsuit for Failure to Protect VictimsAs we reported earlier this year, the original complaint has been filed by Charles Wildes, Francisco Doria, Aric Harod, Akiva Katz, James Gurry, and Ronald Nelson – represented by the law firm of Silver Miller – made on behalf of all Bitconnect customers. The plaintiffs stated that Bitconnect’s former $2.5 billion market capitalization was “built through the use of fraudulent means,” in particular “a wide-reaching Ponzi scheme that defrauded investors, made a mockery of state and federal securities laws, and employed an army of social media mercenaries who were paid to bring more unsuspecting victims into the fraud.”

After the matter was exposed, a number of prominent people on the platform have called out Youtubers for promoting Bitconnect, including Pewdiepie. Now the accusations go deeper than that, blaming the platform itself, which might have chilling consequences for sharing crypto content on social networks if accepted by the court.

Youtube Dragged Into Bitconnect Class Action Lawsuit for Failure to Protect Victims

Should media platforms like Youtube be blamed for the content scammers upload? Share your thoughts in the comments section below. 

Images courtesy of Shutterstock.

Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.

Tags in this story
BCC, BitConnect, Class Action Lawsuit, class action suit, Fraud, Google, N-Featured, Scam, YouTube
Tony Hawk Foundation Added to Bitpay's 100 Crypto Supporting Nonprofits

On June 24, well known nonprofit the Tony Hawk Foundation revealed it is now accepting cryptocurrencies for donations through Bitpay.… read more.

New Betting Game Allows People to Wager on BTC's Next Block Fee

Bitcoin core (BTC) prices have been rising sharply over the last few weeks and people have also noticed BTC transaction… read more.

Avi Mizrahi

Avi Mizrahi is an economist and entrepreneur who has been covering Bitcoin as a journalist since 2013. He has spoken about the promise of cryptocurrency and blockchain technology at numerous financial conferences around the world, from London to Hong-Kong.