I'm sure like me you were pleased to finally see Bitconnect crash and burn the other week. Whilst I do feel a little bit sorry for anyone who ends up losing out financially everyone was warning you for the longest time to get out of Bitconnect or to avoid it at all costs if you had yet to sign up.
Bitconnect was basically a Ponzi scheme that would eventually end up collapsing under its own weight so this was always going to happen. Sites like Bitconnect put a huge burden on the Cryptocurrency Industry which is already struggling at times to prove itself in a world where Fiat currency is king and governments are uninformed and as a result scared of embracing Cryptocurrencies. So when you have such blatant Ponzi scams out there that wouldn't exist if it wasn't for Bitcoin or (insert altcoin here) then its hard to convince the skeptical that this is the future.
Currently six plaintiffs have filed a lawsuit against Bitconnect, its representatives and two YouTube channels that promoted the company. This should be a lesson to anyone who makes videos about sites like Bitconnect, anything you say can and will be used against you if you are found to knowingly be partaking in the promotion of and financial gain from sites such as Bitconnect.
The six plaintiffs represent investments of $771,000 combined. As they all lost close to 90% of their investment, they will seek compensation. It is however highly unlikely to happen without Bitconnect being taken to court. The Ponzi Scheme collapsed entirely and those responsible are long gone. This would make a class-action lawsuit a favorable outcome in the long run. This also sets a precedent for others that have been a victim this scam to follow. With enough support from the victims, Bitconnect will have to face some form of punishment eventually.
It should go without saying but when looking into investment opportunities in the Cryptocurrency world always remember if it sounds too good to be true it probably is. Don't trust the word of some random YouTube channel telling you how wonderful a particular investment platform is particularly when they stand to be financially rewarded for recruiting new customers.