Bitconnect [BCC], a crypto investment platform, made waves on the Internet after one of their videos went viral on YouTube. Now, YouTube is added as a defendant in the lawsuit against the Ponzi scheme that was Bitconnect.
The initial lawsuit was filed in January after one of the most spectacular knife drops in the history of cryptocurrency. On January 8th, the price of the BCC token was $431. One week later, on January 15th the price of the coin was $289. The coin bottomed a few weeks later in February, trading at $2. One BCC token is currently worth $0.41.
The lawsuit was filed on 24th January, by six individuals through law firm Silver Miller. The claimants stated that Bitconnect issued unregistered securities in the form of their tokens and that they obtained funds through a Ponzi scheme.
Losses were in the ballpark of a total of $771,000, which were used to meet the expectations of existing consumers.
According to documents acquired by Cointelegraph, Bitconnect posted promotional materials on YouTube which allegedly lured potential investors to an investment scheme deemed as ‘fraudulent’. YouTube is held responsible as it failed to delist and demonetize these promotional materials, which is alleged to have exposed “countless” users to the illegally-promoted scheme.
Reportedly, the top 10 BitConnect affiliates on the site posted over 70,000 hours of unedited content. This content generated 58 million, which greatly exceeded the threshold numbers for YouTube’s eligibility standards. The fraudulent content was also correlated with the videos on YouTube speaking about the scam, of which there was a great number.
David Silver of Silver Miller commented:
“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 argument is that if YouTube had conducted a search, they could have delisted the videos and prevented further penetration of the scam. Instead, they were alleged to have accepted a number of Bitconnect-related videos, which the document urges demonstrates their failings as a ‘gatekeeper’.
It is left to see how YouTube or Google LLC will respond to the allegations.
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