BitConnect Assets Are Temporary Freezed by US Court

February 1, 2018

U.S. District Court for the Western District of Kentucky has granted a temporary restraining order (TRO) that freezes the assets of infamous BitConnect. The reason for it is the second lawsuit filed by a Kentucky resident Brian Paige that hits the company after it closed its lending platform and exchange. 

Defendants, BitConnect International PLC, BitConnect LTD, BitConnect Trading LTD and Ryan Maasen, are required to provide cryptocurrency wallets and trading account addresses, as well as the personal data of everyone, who received funds in cryptocurrency from BitConnect accounts in the last 90 days.

They have 10 days to comply with TRO, and they are also prohibited from transferring any of their assets without court permissions. 

That lawsuit by Brian Paige on behalf of all investors filed against BitConnect after the company closed the lending platform and the exchange. This decision led to a collapse of the rate of BitConnect Coin (BCC), which fell by more than 95%. Paige accused the company of organizing a Ponzi scheme and demands the company to compensate his losses caused by the abrupt collapse of BCC token price

The court found that freezing of BitConnect assets is necessary, because otherwise investors are risking to lose their chances of getting their deposits back. It states that the TRO "is in the public interest because the public is interested in preventing massive consumer fraud and other securities violations." 

TRO states:

"This temporary restraining order is being entered without notice to Defendants to preserve the status quo and prevent irreparable harm until such time as the Court may hold a hearing."

The court also noted that due to circumstances of the case, the plaintiff "has shown a strong likelihood of success on the merits" and that temporary freezing of assets preserves the status quo and gives the court an opportunity to make a fair decision in this case. The TRO is effective until February 13. 


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