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Bitcoin Users Seek Lawsuit Against and CEO

By William Vogeler, Esq. | Last updated on

In the cryptocurrency frenzy, lawsuits are becoming business as usual.

The latest controversy stems from the difference between "Bitcoin Cash" and "Bitcoin." More than 1,000 people are pursing legal action against for allegedly misleading people to buy Bitcoin Cash instead of Bitcoin.

The bottom line is that people have problems with cryptocurrency. It's not unusual in the volatile market, given how a company can get sued just for saying "bitcoin."

Confusing Label

According to reports, and its founder are facing a lawsuit because of a "confusingly-labelled wallet." The website reports on cryptocurrencies and offers a digital wallet.

Users may buy Bitcoin Core, which is the original cryptocurrency, or Bitcoin Cash, which is designed to be a faster version. That's confusing, unhappy customers say.

It's not the only lawsuit to be leveled at cryptocurrencies lately. With added pressure from the Securities and Exchange Commisions, bitcoin is in the cross-hairs of litigation everywhere.

For example, authorities arrested the founders of Centra Tech in another case recently. The SEC said Centra spun a "web of lies" to capture crytocurrency business.

"Bitcoin Frenzy"

Meanwhile, attorneys sued for a "thinly veiled strategy to take advantage of the Bitcoin frenzy."

According to the complaint, the company announced plans to raise up to $500 million with its own "coin offering," based on the blockchain technology of digital currencies. The announcement bumped Overstock price up 500 percent in five months, but not so much in the sixth.

The Dow dropped 1,000 points in early February, and bitcoin bounced along with it. The cryptocurrency lost half its market cap in the first quarter of 2018.

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