In a fresh twist of events, YouTube has been called as a defendant in the class action lawsuit against BitConnect that was filed by six victims of its alleged crypto Ponzi scheme.
In January this year, six individuals filed the lawsuit against BitConnect claiming that the investment platform had issued crypto tokens that were unregistered securities. The claims went on to suggest BitConnect had raised further funds through methods that exhibited a Ponzi scheme.
New arguments allege that Youtube “failed as a gatekeeper” in its responsibilities to protect users from false or misleading advertising perpetrated by BitConnect. The adverts in question were promotional videos uploaded by BitConnect affiliates and designed to lure unsuspecting investors into the illegal scheme.
The videos encompassed over 70,000 hours of footage and were viewed 58 million times, exceeding thresholds defined by the Youtube Partner Program eligibility standards. A number of Youtube users are said to have attempted to notify YouTube of the adverts but no action was taken.
The plaintiffs in the case are represented by law firm Silver Miller and claim they suffered combined personal losses of $771,000. Following a cease and desist order filed on January 16 this year, BitConnect stopped all services and shut down its exchange.
The lawsuit also seeks to prosecute promoters of BitConnect, including Glenn Arcaro, Craig Grant and CryptoNick, who used their Twitter following to promote the platform and earn commission on referrals.
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