Youtube, the world’s most widely used video-streaming platform, has been caught in the midst of the recent Bitconnect Ponzi Scheme Class action lawsuit.
As per documents that have been made available by relevant authorities, Youtube is facing charges that it acted as an “advertising platform” for Bitconnect without actively conducting a thorough examination of the product and its legitimacy.
During its heyday, Bitconnect advertised itself as an investing platform that could help users procure daily profits of up to 1%. They claimed that these figures were backed by an intricate set of investment algorithms that had been “time tested”.
As with any Ponzi scheme, it became obvious fairly quickly that the venture was dodgy and soon enough, Bitconnect went broke.
Since Youtube acted as a transmission agent within the larger scheme of things, it is being alleged that the company should now pay some fines because it let many Youtubers’ advertise the platform on their channels– where they claimed Bitconnect actually worked for them.
Final Take
Give that most media platform like Facebook, Google, Twitter are unwilling to have any association with crypto related products, this is quite a rare occurrence. With that being said, the outcome of this issue will most likely set a precedent for future cases that may lie in such gray areas.
If anything, this case could potentially introduce higher levels of scrutiny and security for user-uploaded content meant to act as an endorsement for any kind of product.
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