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YouTube Accused of Negligence in BitConnect Fraud Lawsuit

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Digital media giant YouTube has been named in class action lawsuit tied to the collapse of BitConnect, the cryptocurrency lending platform widely accused of fraud.

BitConnect’s shutdown in January – which followed a series of warnings from U.S. investors – triggered a number of investor lawsuits, including one filed in late January in Florida. BitConnect’s platform was tied to a token and in-house crypto exchange, both of which have gone defunct in the months since (once valued above $400, the token is now worth less than $0.50 apiece according to CoinMarketCap).

That lawsuit later became a consolidated class-action following a court ruling in June, coming in the wake of claims of an ongoing inquiry by the Federal Bureau of Investigation.

The lawsuit faults YouTube for negligence in not policing the content on its site – particularly promotional videos by BitConnect boosters and affiliates – more tightly. The plaintiffs wrote that, all told, the top 10 most popular BitConnect affiliates “published over 70,000 hours of unedited content, generating 58,000,000 views and luring hundreds if not hundreds of thousands of victims.”

They went on to state:

“By enacting policies designed to prevent bad actors (such as those soliciting investments in fraudulent Ponzi schemes) from disseminating harmful, offensive or inappropriate content through its platform, YOUTUBE owed, by its own assumption, Plaintiffs and the Class a duty to reasonable care to prevent such content from harming its users.”

YouTube, according to the lawsuit, “failed as a gatekeeper to protect its users.”

Google – YouTube’s parent company – notably moved in March to ban cryptocurrency ads, including those tied to initial coin offerings (ICOs). That policy went into effect last month.

In an email to CoinDesk, David Silver, founder of the Silver Miller law firm that filed the class-action suit, urged the company to “take responsibility” for its alleged role.

“The platform allowed BitConnect to reach hundreds of thousands of potential investors, all while YouTube was aware that BitConnect was a scam. As the old saying goes: Sometimes when you lie down with dogs, you get fleas,” he wrote.

Google did not immediately respond to a request for comment.

Image Credit: BigTunaOnline / Shutterstock.com

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Spectrum Offers Unbeatable Entertainment For The Best Value

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Spectrum Entertainment

TC on your terms with more FREE HD

  • FREE HD with every Spectrum TV package.
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As a premier destination for premium original series available exclusively to Spectrum TV customers. Now available! You can watch L.A.’s Finest, Free on Demand, anywhere on any device.

L.A.’s Finest: From the universe of the Jerry Bruckheimer “Bad Boys” franchise, the one-hour series followed Syd Burnett (Gabrielle Union) and Nancy McKenna (Jessica Alba_. Taking on the most dangerous criminals in Los Angeles while skirting the rules, and speed limits, Syd and Nancy become a force to be reckoned with — on the streets, and in each other’s lives.

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Where Did Jay Stark Come From?

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Jay Stark

Sunshine State

When asking Jay Stark where he is from, he laughed and said he’s from the earth where all of us are a big family on a journey to make the most of our limited time together. After digging deeper, he told us he’s from the Sunshine State but definitely enjoys the cold atmosphere more.

Growing up as a kid, one of his dreams was to travel the world and learn new things. He now spends his time traveling the world doing life-changing workshops while embracing different cultures around the world and spreading good vibes everywhere he goes.

Jay Stark
Jay Stark

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Who is Jay Stark?

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Jay Stark

Jay Stark is an author, speaker, and consultant who lives to inspire and empower people to realize that they are capable of achieving any desire if they put their heart and soul into it with a pinch of their mind.

Jay Stark
Jay Stark is an author, speaker, and consultant

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