Share this article
BitConnect Hit With Second Lawsuit Over Ponzi Allegations
Kentucky citizen Brian Page filed a class action lawsuit on behalf of each of BitConnect's former investors, alleging the company ran a Ponzi scheme.
By Nikhilesh De
Updated Sep 13, 2021, 7:30 a.m. Published Jan 30, 2018, 5:00 p.m.
Make us preferred on Google
A new lawsuit has been filed in connection with the controversial BitConnect cryptocurrency investment scheme, the second such case to be filed in the past month.
The lawsuit, filed on behalf of Kentucky resident Brian Page, names BitConnect International, BitConnect LTD, Bitcoinnect Trading LTD and Ryan Maasen as defendants.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Submitted on Monday, Page is seeking to recoup losses incurred when the price of BitConnect’s token (BCC) tanked following the news that the exchange was shutting down its lending and exchange platform. As of press time, the BCC token is trading at roughly $6.20, representing a significant plunge given that it traded above $300 a month ago.
In the suit, Page accuses BitConnect of operating a Ponzi scheme, noting that investors were required to transfer their cryptocurrencies to the exchange in return for BCC tokens, which would then act as the primary investment.
Page cited BitConnect’s claims that it would provide a 3,000 percent return over the course of a year or a monthly return of 40 percent as reasons why investors would use BitConnect.
While Page acknowledges that BitConnect includes a disclosure that investors may not see a return on their deposits, the disclosure does outline various reasons why this may happen.
The filing continued:
"Not listed is that disclosure was a risk Bitconnect could unilaterally shut down its lending platform, convert all of people’s investments into BCC, tank the market for BCC by eliminating any future value of BCC, and close up shop."
The suit also claims that Ryan Maasen, an Oklahoma resident, acted as an unregistered agent for BitConnect, and had profited from misleading investors about the potential returns they would see.
Unlike the previous legal filing, submitted in Florida by the law firm Silver Miller, Page's suit limits itself to the companies associated with BitConnect and Maasen. Still, both lawsuits were filed in an effort to seek recompense for every investor who lost money in BitConnect.
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Bitcoin trader warns of downside as gold rally continues to pull focus from BTC
Crypto prices stabilized after an early-week dip, but bitcoin continued to trail gold and silver as macro trades dominated after the Fed’s policy hold.
What to know:
- Bitcoin hovered around $88,000 after the Federal Reserve left interest rates unchanged, with trading subdued despite modest gains in ether, solana, BNB and dogecoin.
- A sharp rebound in the U.S. dollar and continued strength in commodities, especially record-high gold and elevated silver and copper, have overshadowed crypto markets.
- Analysts say bitcoin is trading more like a high-beta risk asset than a macro hedge, stuck in a bearish consolidation about 30 percent below its October peak and struggling to break above key resistance near $89,000.
Top Stories
