Cryptocurrency Outlet Accused Of Fraud In 2nd Investor Suit

Law360, New York (January 29, 2018, 9:57 PM EST) -- The legal woes facing cryptocurrency marketplace BitConnect mounted Monday as the U.K.-registered lending and exchange platform was hit with a second class action complaint alleging it was a Ponzi scheme that cheated thousands of investors out of millions of dollars.

The complaint, filed by investor Brian Paige in Kentucky federal court, accuses BitConnect of exploiting the hype around cryptocurrencies to dupe investors into using their bitcoin to buy BitConnect Coins, or BCC, which investors were then allegedly supposed to lend back to BitConnect in exchange for returns generated by its secret proprietary trading algorithm.

"With this transaction, BitConnect promised to plaintiff...

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