A group of investors in the USA have filed a lawsuit in a federal court in West Palm Beach, Florida alleging that the cryptocurrency exchange platform was “wide-reaching Ponzi scheme”, according to Bloomberg reports. These investors are now seeking millions in potential damages.

BitConnect invited investors to exchange their bitcoins for “BitConnect Coins”, its own cryptocurrency. As per BitConnect’s official website, “BitConnect Coin is an open source, peer-to-peer, community driven decentralized cryptocurrency that allow people to store and invest their wealth in a non-government controlled currency, and even earn a substantial interest on investment.” The promoters of the site had promised monthly returns of 40% and 1 % compound interest daily regardless of market performance.