US influencers may face legal action for promoting the wrong cryptocurrency

Feb 21, 2022

Online promoters of bogus cryptocurrencies and scams may soon be liable to legal action from the investors if the recent ruling of a US court is anything to go by. Here is what the new ruling on the BitConnect scam tells us on the topic.

Every other day, there is a new scam targeting cryptocurrency investors. These scams are often hyped up online on various social media platforms and once a substantial sum of money pours in, they disappear equally quickly.

The scammers are always hunted by the relevant authorities after they manage to pull off a heist. A new ruling, however, may blame the online promoters of such scams equally from now on.

The lawsuit, which may lead to a common practice around the world, addresses the BitConnect scam in 2018.

The court also highlights Arcaro's "significant role" in BitConnect’s pyramid-on-Ponzi scheme. "He was the national promoter for the United States, which meant that he managed a team of regional promoters."

Citing examples of how the marketing around the Ponzi scheme worked, the court mentions fake promises like "passive income was merely “a click away”." "Millions of views led to millions of dollars," the court notes.