Bitconnect needs to slip aside a bit at the dock: since July 3rd, YouTube has been a co-defendant in the crypto-investment platform lawsuit. Bitconnect is suspected of being a pyramid scheme. As a result, YouTube should not have advertised the investment platform on its pages.
Mitgefangen mitgehangen: The plaintiffs in the Bitconnect process are now targeting YouTube. This is evidenced by court papers issued on 3rd July. It states that YouTube has failed to warn its users against fraudulent advertising, thereby causing significant damage to Bitconnect investors. Overall, Bitconnect and its partners should have published around 70,000 hours of content on YouTube. This content has been clicked 58,000,000 times and is said to have lured hundreds, if not thousands, into the fraudulent business model of the crypto-investment platform.
The indictment further states that the video portal with its “YouTube Partner Program” should have benefited considerably from the number of clicks. YouTube, as the “partner” of a channel, shares responsibility for its content. A partnership means in the legal sense that one partner can be held jointly responsible for the other’s actions. This is “one of the many reasons why the law requires individuals (and companies) to choose their partners wisely.”
One of the co-defendants generated 33 million views on his channel, which is part of YouTube’s affiliate program. Through the sponsorship of some 12,000 investors he should have made a profit of about five million US dollars. He advertised to YouTube for a majority of these investors, so his earnings are seen as a direct result of his partnership with YouTube.
The class action lawsuit against Bitconnect was filed on January 24th. Plaintiffs are investors who saw themselves cheated out of their money. Among other things, the investment platform failed to register with the Texas Securities Authority. Furthermore, the investment platform has advertised with unrealistic promises. Thus, despite the generally high volatility of cryptocurrencies, maximum profits were promised with minimal risk. At the same time, technical risks of the platform should have been deliberately concealed. In addition, the company deliberately mislead the public when it issued a price guarantee for its coin. In the indictment, Bitconnect’s business model was referred to as a Ponzi scheme.
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