Bitconnect, the worldwide cryptocurrency scam that fell in January 2018 is back in the news after reports that class action lawsuit it received has progressed to include a new defendant.
Records acquired by Cointelegraph revealed that YouTube was added as a defendant in the lawsuit. According to the court documents, the plaintiffs claimed that YouTube failed to delist promotional videos of Bitconnect on the platform. Numerous videos were made by Bitconnect and its affiliate promoting the scheme on the popular video-sharing site.
The claimants said this exposed YouTube users to countless illegally-promoted investments.
Top affiliates of Bitconnect that promoted the scheme on YouTube has generated around 58 million views. Of course, there are also videos on YouTube that talks about the intricacies of the scam in a way to warn future investors. So to sum up, there are affiliate videos and videos that alert users of Bitconnect’s scam scheme.
According to the claimants, YouTube should have delisted the harmful videos. Had it done so, the scam would not have proliferated more.
The claimants also said that the proliferation of harmful Bitconnect content on YouTube is contrary to Google’s policy on banning cryptocurrency-related ads on its products, which includes YouTube.
Announced on Bitcoin.org, Bitconnect dubbed itself as a self-regulated financial system and lending platform. Once the investor deposits money, it is locked on the platform for a period of days to earn returns. Bitconnect promised 1% daily interest return. The more money the user invested, the higher the returns, it claimed.
It started gaining all-time highs by March 2017 and was briefly one of the top 10 coins by December 2017. By January, the scam was on its last legs. As Bitcoin’s value gets reduced by half around that time, the scam fell, leaving thousands of investors with worthless bitconnect coins.