BitConnect Lawsuits Are Piling Up In Florida

Another lawsuit seeking class-action status has been filed in Florida against BitConnect.

AccessTimeIconFeb 12, 2018 at 9:15 p.m. UTC
Updated Sep 13, 2021 at 7:33 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Yet another lawsuit seeking class-action status has been filed in Florida against BitConnect, constituting the third legal action of its kind to be initiated in the state and the fifth overall in the U.S.

Florida residents Andrew Kline, Dusty Showers and Lena Hunt, along with Rhode Island resident Charles Mabra, filed the lawsuit in the U.S. District Court of the Middle District of Florida on Feb. 7, public records show. Additional suits have been filed in Minnesota and Kentucky.

Like the previous lawsuits filed in the past month, this one names Bitconnect’s various arms as defendants. Among the defendants cited in this instance are BitConnect director Glenn Arcaro and affiliate Ryan Maasen, as well as other unknown entities involved in the alleged Ponzi scheme.

The suit claims that BitConnect sold unregistered securities in the state and committed fraud by overstating the possible returns that users who purchased the BitConnect tokens would see. The plaintiffs also alleged that the defendants violated Florida trade and securities laws, as well as the applicable laws in Rhode Island.

The plaintiffs are seeking a jury trial, which would result in damages being levied against the defendants if they are successful. Proceeds would repay investors, as well as provide for the costs of the trial, according to the document.

Just last month, BitConnect saw its assets frozen after a previous lawsuit was filed by aggrieved investors. In the wake of the closure of BitConnect's lending platform, the price of its BCC token has fallen, tumbling from above $300 to roughly $2.90 as of press time.

In January, regulators in Texas and North Carolina moved against BitConnect ahead of a planned token sale, issuing cease-and-desist notices before the lending platform closure announcement later that month.

A full copy of the lawsuit complaint can be found below:

Justice statue image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.