The lawsuit which was initiated in July 24th states that BitConnect issued crypto tokens that were unregistered securities, and obtained additional funds through a wide ranging Ponzi-scheme. The lawsuit was filed by 6 individuals who claim to have lost around $771,000.
BitConnect and its affiliates used Youtube to spread their fraudulent investment scheme through videos. Youtube has failed to delist and demonetize the published videos. The top ten affiliates had posted more than 70,000 hours of unedited content which generated around 58 million views.
“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” said David Silver of Silver Miller, the firm which represents the 6 individuals in the lawsuit.
The plaintiffs are sure that if Youtube had developed an appropriate search of its databases, it probably would have delisted the harmful activities of BitConnect videos.
The document which has been filed in court, concludes:
“YouTube failed as a gatekeeper to protect its users from, and warn its users of, the very harm YouTube set out to prevent with its advertising protocols and proprietary algorithms.”
https://goo.gl/d3aMw2 – court documents