YouTube has been added as a defendant in a class action lawsuit against BitConnect. The lawsuit was filed by six individuals represented by law Silver Miller.
According to the source, the lawsuit was first filed on January, 24 by six individuals represent by law firm Silver Millier. The claimer states that crypto investment platform BitConnect issued unregistered securities crypto tokens. It also obtained additional funds through a “wide-ranging Ponzi scheme”.
Further, it was stated that their personal losses valued around $771,000. However, the BitConnect used the fund received from new investors to meet the expectations of the existing clients.
The document elaborated that BitConnect and its third parties posted a number of promotional videos on YouTube. However, it was considered as inappropriate due to the material allegedly resulted potential investors to a fraudulent investment scheme. Noticeably, Youtube didn’t delisted and demonetize the published videos that exposed many users to injurious videos and illegally promoted investments.
Moreover, around 70,000 houres of uneditied content were posted by top ten BitConnect third parties on Youtube.
David Silver of Silver Miller said:
“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”.
The reports suggested that if YouTube had an accurate conduct a search on its databases it would have helped in delisting the harmful BitConnect videos. But, it still allowed and accepted a number of alleged BitConnect related videos and thus resulted in victims.
The documents reads;
“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”.