Fourth BitConnect class-action lawsuit filed in Minnesota
The latest litigation filed against BitConnect marks the fourth class-action filed against the company in two weeks.
In the latest lawsuit, filed in Minnesota on January 31st, Plaintiff Patricia Mengesha seeks to hold BitConnect International PLC, BitConnect LTD and BitConnect Trading liable for ‘financial losses suffered from an inline investment scam‘.
According to Mengesha, a resident of Dakota County, Minnesota,
Bitconnect scammed thousands of Minnesotans and hundreds of thousand of Americans out of millions and millions of dollars.
Bitconnect took advantage of the increased attention, interest and success of cryptocurrencies and legitimate companies and technology to convince Plaintiff and the class that they would make money on their investment in Bitconnect’s product.
As published in BehindMLM’s April, 2017 BitConnect review, Mengesha claims
Bitconnect was both a pyramid scheme and a Ponzi scheme. That is, it relied on new money from new users, who were in turn expected to get more new users to produce more new money, while not actually engaging in any real activity that would produce income, profits or benefit to investors.
Mengesha asserts that relying on representations made to her by BitConnect regarding investment in the platform, resulted in her investing
- $1010 on December 27, 2017
- $1420 on January 6, 2018 and
- $10,100 on January 12, 2018
On January 16th BitConnect collapsed, although Mengesha claims as an investor she became aware of BitConnect’s collapse on January 13th.
Following her investment of $12,770 and BitConnect’s collapse, Mengesha states her ‘investment is worth a few hundred dollars‘.
Mengesha’s complaint seeks to establish a Minnesota class of victims,
who invested money in the Bitconnect lending program between January 25, 2017 and January 17, 2018, through the transfer of Bitcoin or any other currency to Bitconnect.
Across seven counts, Mengesha is accusing BitConnect of
- violating Minnesota Securities Laws
- Violating the Federal Securities Act
- breach of contract
- fraud by concealment
- violations of the Minnesota Prevention of Consumer Fraud Act
- false advertising and
- fraudulent inducement
Mengesha’s lawsuit seeks
- certification of the proposed Minnesota class of BitConnect victims
- an order temporarily and permanently enjoining BitConnect from continuing the unlawful, deceptive, fraudulent, and unfair business practices alleged
- an order temporarily and permanently enjoining defendants from selling, liquidating, transferring, spending or otherwise dissipating assets earned from Plaintiff and the Class
- injunctive relief to make Plaintiff and the Class whole
- costs, restitution , damages and disgorgement in an amount to be determined at a jury trial and
- legal costs
Mengesha’s lawsuit is the fourth class-action to be brought against BitConnect in two weeks. Similar actions have been filed in Florida (second lawsuit) and Kentucky.
Stay tuned…
They’re wasting their time and money. The Bitconnect founders are sitting comfortably in some South American country with no extradition treaty, sipping pina coladas.
The victims need to direct their lawsuits at the Ponzi pimps, to try get some claw-backs. It will only be pennies in the dollar, but it’s their best chance of getting anything.
You sure weren’t worried about all the counts you brought up when you thought you were going to make millions.
You went in with the full knowledge that this was a very risky investment platform. Be thankful I am not a judge as I would dismiss these cases.
Contrary to popular belief throughout the MLM underbelly, citing “risk” is not a justification for financial fraud.
#TheNewInQuiSition Will FAIL!
ToS are 100 PurrCent SAFE!
Local GovernMents and Regulations can’t stop a global innovation – The Pandora’s Box was opened long ago! Freedom Of MoniesCration To The Initiated! 😉 <3
#WhyNoShow
Fun Fact: A Ponzi scheme’s Terms of Service has never held up in court against wire and securities fraud charges.
Well, I’m ashamed to admit I got suckered into the BitConnect scam and lost $32,000. How? I was always suspicious of Bitconnect (did not trust), but was lured by a convincing friend (that I did trust).
The expensive life lesson for me is to trust no one except yourself. Treat other people with suspicion who have a vested interest to gain from pushing you to one course of action over another.
This is like a bad dream I wish I could wake up from.
Matthew up above is a fraud and a BitConnect propaganda operative. Uses an English sounding name but his lack of grammar is proof enough that English is ‘his’ second language.
Please remove this from your site, this case has been consolidated and no longer a personal lawsuit.
That doesn’t change the fact it was filed and the details therein, which is what the article reports.