United States:
Eleventh Circuit Overturns Dismissal Of Cryptocurrency Ponzi Scheme Class Action Suit
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On February 18, 2022, the United States Court of Appeals for the
Eleventh Circuit unanimously reversed a district court’s
dismissal of a putative securities class action against online
promoters of a new cryptocurrency coin (the “Promoters”)
for violations of Section 12 of the Securities Act of 1933 (the
“Securities Act”). Wildes v. BitConnect Int’l
PLC, No. 20-11675 (11th Cir. Feb. 18, 2022). Plaintiffs
alleged that the cryptocurrency investment platform (the
“Company”) that issued the new cryptocurrency was in fact
a Ponzi scheme masquerading as an investment program, and that, as
a result of the Company’s scheme, investors suffered more…
