The 11th Circuit Court of Appeals took back a prior order that prohibited victims of the Bitconnect Ponzi scheme from filing a class action lawsuit. So, it’s encouraging news for the victims as now they can file a suit against the Bitconnect Ponzi scheme.
Bitconnect announced its initial coin offering (ICO) in 2017 which failed in January of this year. Appellate courts are higher courts that review matters that have already been decided to determine whether the judgement should be overturned or upheld.
Victims can now file a suit against BitConnect (BCC) and its promoters Glenn Arcaro, Ryan Maasen, Trevon James, Ryan HiIdreth, and Craig Grant. It is upon complainants whether to pursue the lawsuit or not. The original complainants filed the lawsuit in order to be paid for the losses following BitConnect and its promoters defrauded them. The promoters “made a mockery of state and federal securities laws,” according to the complaint. The defendants argued in the Southern District of Florida that they could not be held liable for securities fraud because the project was promoted through internet mass media platforms, according to Law360.
“Only when a seller directs solicitations to specific prospective customers” could there be culpability, the promoters correctly argued. The promoters claimed that they had not directly recruited bitcoin buyers by using online social media sites. Because there was no direct solicitation, they claimed there was no securities fraud.
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