BitConnect was a cryptocurrency investment company operating on a Ponzi system that collapsed in January 2018. YouTube is now being sued for alleged negligence in spreading BitConnect’s content. Apparently, YouTube has released more than 70,000 hours of BitConnect-themed video, generating 58 million views. YouTube’s negligence could result in hundreds of thousands of casualties.
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The founder of the Silver Miller law firm who launched the Bitconnect class action, David Silver, said:
“The YouTube platform has allowed BitConnect to reach hundreds of thousands of potential investors, knowing it was a scam. As the old saying goes, sometimes when you go to bed with dogs you get fleas. “
BitConnect promised its customers daily revenues of up to 40% per month for their investment in their site. Investments over $ 10,000 were rewarded with an additional daily gain of 0.25%. The return on investment was on BCC, the cryptocurrency created by the platform.
The company announced that it was closing due to the negative media coverage it was undergoing. At the moment, Bitconnect was ensuring its customers to be reimbursed in BCC. But it did after the announcement of the closure which resulted in an impressive fall in the value of the BCC by over 99%. The firm took the opportunity to buy a maximum of BCC at a slower to pay its customers in a currency that is absolutely worth nothing today.
This fall of cryptocurrency is without a doubt the biggest and fastest collapse in the history of cryptocurrencies. Less than six months was enough to bring the CCB $ 2.5 billion in market capitalization to less than $ 4 million.
The BitConnect scandal is probably one of the reasons Google, the parent company of YouTube, has banned all cryptocurrency advertising. This ban does not affect content posted on YouTube.
It remains for justice to decide if YouTube is really responsible for the victims of the content of the videos posted on their platform. A considerable number of videos are published on YouTube every day and it would be very difficult for YouTube to do an analysis and delete those related to scams.