YouTube added as Defendant in Lawsuit Against BitConnect
According to court documents that was filed on July 3, YouTube has been added as a co-defendant in the class action lawsuit against BitConnect.
The initial class action suit was filed on January 24th by six individuals represented by law firm Silver Miller. The plaintiffs claimed that they lost $771,000. They also claimed that crypto investment platform BitConnect issued crypto tokens that were unregistered securities, and obtained additional funds through a “wide-ranging Ponzi scheme.” BitConnect allegedly utilized the funds received from new investors to pay out old investors.
BitConnect was ranked in Top 20 token but dropped to a value below $6 from an all-time high of $460. The investment platform promised a 40% returns and promoted the tokens. But they closed abruptly on January 17 after months of complaints from customers and warning from regulators. But BitConnect claimed that the “continued bad press” surrounding the platform, two “Cease and Desist” letters from regulators, and multiple DDoS attacks on their site forced them to close.
The top ten BitConnect affiliates on YouTube posted more than 70,000 hours of unedited content, which generated 58,000,000 views, according to sources. Many users notified YouTube about the fraudulent activities by BitConnect, posting videos with titles such as “How bitconnect scam works in great detail,” “Craig Grant Explains the Bitconnect scam,” and others. But YouTube did not take any necessary steps to remove the videos from the platform.
David Silver of Silver Miller states, “This case is not about YouTube being the speaker or publisher of the content on its website. Instead, liability is predicated on YouTube’s failure to act after learning from content directly published on YouTube of the readily foreseeable harm posed by its advertising partners… As the old saying goes: Sometimes when you lie down with dogs, you get fleas.”
The plaintiffs claim that YouTube didn’t take any appropriate measure to delist the misleading BitConnect videos which resulted in numerous victims, including many members of the Class.
The case document pointed fingers at Google LLC, which changed its financial products policy to ban all cryptocurrency-related ads and associated content due to a potential harm to users of Google-owned platforms, including YouTube.
The document reads, “YouTube failed as a gatekeeper to protect its users from, and warn its users of, the very harm YouTube set out to prevent with its advertising protocols and proprietary algorithms.”
Image via Shutterstock
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