Influencers beware: promoting the wrong crypto could mean facing a class-action lawsuit

Influencers beware: promoting the wrong crypto could mean facing a class-action lawsuit

Influencers beware: promoting the wrong crypto could mean facing a class-action lawsuit
Illustration by Alex Castro / The Verge

The story of BitConnect doesn’t include any rapping Forbes bloggers slash money launderers or dubiously-obtained ape JPGs, but this “pyramid-on-Ponzi” case has spawned a court ruling (PDF, embedded below, via @stephendpalley) that should serve as a warning for influencers: they could be held liable for peddling shady crypto investments.

In case you’ve forgotten this particular scam, BitConnect’s promoters told its victims that if they handed over their Bitcoin for a period of time, their crypto would be used by an automated trading bot that would return huge profits. None of that was true, and the operators instead paid off older investors with funds from the new ones, bringing in $10 million per week at its peak. All told, the scam…

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