According to Cointelegraph, YouTube – the largest video portal – has been included in the list of defendants for a class action lawsuit against BitConnect.
The claim was filed in January on behalf of six individuals, whose interests are represented by the law company Silver Miller. The plaintiffs accuse BitConnect of issuing crypto tokens, which are “unregistered securities”, as well as attracting additional funds through various schemes.
The total damage to the plaintiffs was $771 thsd. In addition, BitConnect is accused of using the funds of new investors to pay off debts to the old ones.
As for the involvement of YouTube, according to the publication, the financial pyramid used a lot of advertising videos on the service. Those videos do not comply with the policy of the service, as they draw potential investors into a fraudulent investment scheme. In addition, YouTube did not delete or demonetize published videos.
The plaintiffs believe that if YouTube searched through the video database, it could remove the misleading videos of BitConnect. Instead, the service continued to publish them, which resulted in more victims of fraud.
In addition, the suit also affects Google, which changed its financial policy to ban advertising of any cryptocurrency products and related content. The policy affects all the services of the corporation, including YouTube.