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RE: BitConnect class action straddles dangerous precedent
cryptocurrency isn't "unregulated". fraud is still illegal. it doesn't matter what the vector is. promising high returns and paying out early entrants through the investments of late comers is considered a ponzi, and in the US it's illegal.
cryptocurrency doesn't exist independent of all laws and society. it can coexist. flushing out the bad actors is an absolute requirement if the honest projects are to be taken seriously.
Ultimately, the BitConnect saga has just identified the pitfalls of ignorance within social media.
I could say the same about this post.
The fact that BitConnect was able to operate for 20 months before shutting down is about as close to "unregulated" as you can get. When you see the amount of rubbish ICOs hitting the market (inc Bitconnect), it means there is no gatekeeper to decide who can and cannot raise capital. That is unregulated.
The fact they were shut down following notices from Texas and North Carolina more than a year after they commenced operations would suggest that any criminal system is playing catchup to the crypto system and this form of legal regulation is miles behind based on the fact ONLY two US States issued notices to Bitconnect.