The YouTube video streaming and sharing platform was recently added as an advocate in the class action against BitConnect, a company that allegedly ran a cryptocurrency-based Ponzi scheme. Legal documents have been filed on July 3rd.
BitConnect is “a vast Ponzi scheme”
The six individuals who originally filed the complaint on January 24 are represented by the law firm Silver Miller. They argue that the BitConnect cryptocurrency investment platformrepresented a “vast Ponzi scheme” . The six complainants also claim to have suffered personal losses of approximately $ 771,000. Bitconnect would have used the funds of new investors to meet the expectations of former investors.
YouTube reportedly neglected the protection of its users against content promoting BitConnect. The platform failed to write off and demonetise the videos published by the company . In addition, this has exposed “countless” visitors to YouTube to offensive videos and illegally promoted investments.
It seems that BitConnect has published more than 70,000 hours of content on YouTube. These publications would have generated about 58 million views, leaving a large number of visitors and potential investors at risk of fraud and fraud.
YouTube failed as protector
According to the document, the number of views of several videos of affiliated promoters has significantly exceeded the thresholds of “enhanced” eligibility standards. When in the other camp, some users of the popular video platform reported Bitconnect’s fraudulent activity with revealing posts like “How the Bitconnect scam works in every detail” or “Craig Grand explains the Bitconnect scam. “.
Silver Miller’s David Silver addressed Cointelegraph saying:
“This case is not about YouTube being the speaker or publisher of the content on its website. Instead, the responsibility is based on the fact that YouTube did not act after learning on YouTube the directly predictable content of its advertising partners … as the old saying goes: sometimes, when you go to bed with dogs, you catch fleas. “
The complainants claim that YouTube could have taken protective measures such as the removal of harmful videos from BitConnect.
Yet, the platform has accepted an exponential number of videos related to the company, which has resulted in several victims.
Google LLC was also cited by the court document. The company has banned any crypto-currency and related content advertising campaign because of potential harm to users of Google platforms, including YouTube.
“YouTube has failed as an access controller to protect its users and warn them of the harms that YouTube strives to avoid through proprietary advertising protocols and algorithms. “
Why do you think YouTube has not responded? What do you think of the charges against him? Tell us in the comments section below.