BitConnect might face court, plaintiffs accuse exchange of fraud scheme

Investors who thought BitConnect was a good way to invest in the cryptocurrency market were left with empty hands after the collapse of this exchange. Now some of them quite expectedly want to sue BitConnect’s founders. They have filed a complaint in which they describe the initial marketing statements of BitConnect and what happened in real life, in conclusion telling that this cryptocurrency exchange was a Ponzi scheme all along. The plaintiffs, as the press notes, in total lost around 700,000 USD.

As witnessed by the older reports regarding this cryptocurrency organization, many notable figures of the market warned investors that this enterprise suspiciously resembles a Ponzi scheme, which in the end turned out to be completely correct. Charlie Lee and Vitalik Buterin, creators of Litecoin and Ethereum respectively, were both not sure about the transparency of intentions of BitConnect, which for many people became a decisive argument against investing in it.

BitConnect token is still alive, as is looks from the statistics on Coinmarketcap, and it’s even more expensive than Ripple ($10.77 vs Ripple’s $1.17). This is the perfect, textbook example of how the price of asset does not necessarily mean the asset lacks adverse properties. Same was said by Ben Carlson from Ritholtz Wealth Management in another situation involving price dynamics and cryptocurrency.