Topic: Bitcoin TV commercial - here come the lawsuits and why that’s A VERY BAD THING! (Read 182 times)

Just read this. I’m a recovering attorney. Trying to stay away from it forever!

Anyway - YOU ARE SO RIGHT and I can’t believe that has NEVER crossed my mind! I AM also surprised there are not already lawsuits pending. I wonder if it has something to do with the jurisdiction of the people/companies creating new coins?

Who knows but now I’m tempted to dig a little further and find out if there have in fact been lawsuits - anywhere in the world.

Great point!

It wouldn’t be a lawsuit over Bitcoin anyway. It would be a lawsuit against the company and like I’ve said a hundred times, sometimes it only takes one - even it is dismissed. Trust me - this entire industry will be partially regulated by the judges in this country. And in the even you’re suffering under the delusion that all judges are wise, experienced attorneys themselves, wake up! I’m here to tell u not all judges are firm of mind and/or character or are unqualified for the office they hold - especially if they are elected or appointed by Trump.

Just wait and see.

It is concerning because it could be incorrectly attributed to Bitcoin. I mean, fiat has been used for schemes like these since time immemorial. They're only using Bitcoins due to its reputation.

But yeah, for the commercial you saw specifically, I visited the site and they don't sell Bitcoins or any cryptocurrency at all. Their package comes with Bitcoin books along with a subscription to an insider website of sorts where you could get investment advice. Even if they click the massive "Order Now" button, they'd only be short $20 and will get access to some Bitcoin references they don't even need to pay for.

I'm just speaking for myself here, but I don't think there will be any rulings against Bitcoin itself because of companies like this specifically. It's dubious marketing for sure, but they're only basically selling advice. The materials themselves could have plenty of warnings about investments too, for all we know.

This is not gambling (in the context of advertising at least lol). Everyone knows what gambling is and very few expect to win. Likewise, very few sane people empty their retirement accounts to go play blackjack. And there are people who actually monitor this shit in a regular casino because . . . it is ALREADY a tightly regulated industry and actually has rules addressing that very situation.

Whereas crypto is not. You do know, of course a large number of the statutes, regulations, etc. in the U.S. were born from a lawsuit? You might want to read  my reply to the toothpaste analogy for more explanation.

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Thanks for the advice but I believe you may be wrong. Plus, “toothpaste litigation” is hardly analogous to a lawsuit involving losses in the crypto market! Come on! Maybe use your head?

First, toothpaste, it’s ingredients, and any claims made with regard to the toothpaste, is a highly regulated product in the US. The product must meet FDA requirements with regard to all 3 areas.

Second, with toothpaste, there is a product in a box you take home with you. At any time before one purchases toothpaste or before they use it, any literate adult can read all about the ingredients, proper use AND warnings. They are usually on the box AND the container inside the box. The point here is that anyone who buys toothpaste gets two hard copies of all of the written guidance and warnings  to take home with them. Therefore, if you ignore all the warnings and disclaimers and buy the toothpaste anyway and it doesn’t perform as well as expected, there would likely be no possible claim as long as the toothpaste meets the FDA regulations. The law as already written will prevent the vast majority of claims.

Third, the damages in any toothpaste lawsuit managing to squeak its way into a court would be what? The $3.50 spent on the toothpaste? MAYBES  the bill for a dental visit?  

Investing in general is a whole different ballgame and is tightly regulated by its own set of unique laws, some of which are quite complex, with possible criminal liability. Investing in crypto is like investing in the wild west. No laws, no sheriff, fend for yourself.

First, because there are no laws or precedent upon which one could rely, this issue, is ripe for litigation and a talented attorney with a knowledgeable judge could be quite successful.

Second, the possible damages involved are going to be MUCH larger than those in your toothpaste analogy. How many stories have we heard about people losing their house or retirement in the crypto market? It will only take one large enough lawsuit or even a large settlement to get the government’s attention and everyone knows the crypto market is ripe for regulation in the US.

Third, with regard to the warning on the opening page of the website, I have little doubt there are many lawyers and judges who will find it doesn’t pass muster. It may make everything perfectly legal and unactionable. However, look at everything they claim BEFORE you even see  the warning! Plus, there are two GIANT “Puchase Now!” links before you ever see the warning. But some of the claims they make or in bold, flashing text or spoken by actors are  glaringly unrealistic in today’s crypto market. Not anytime soon at least! This company may think they are covered with the small print on the TV ad and on the video you can watch on the website. But the video is not required viewing.

Looking at this website and watching the TV commercial,  I can see this company has attempted to protect itself is with the TV warnings and warnings on the video. But in this untested, unregulated area, which, if anything, is most analogous to a securities fraud case as opposed to a toothpaste lawsuit, there’s a lawsuit out there just waiting to happen.

Therefore, I respectfully disagree not only with your analogy but also with the point you’re attemtpting to make using said analogy..

⚠️⚠️⚠️*IMPORTANT! PLEASE READ FIRST! THE FOLLOWING IS NOT LEGAL ADVICE! I am NOT acting as an attorney when I make statements in these discussions.. Neither is it investment advice or any other advice other than MY OWN PERSONAL OPINIONS BASED ON MY OWN EXPERIENCE AND KNOWLEDGE. . Although I have practiced as an attorney in state and federal courts, I have never filed or been involved in any type of security fraud case. I have zero experience in the area. I am also probably considered somewhat of a newbie in crypto investing and trading. (I don’t know what the standard is.) The crypto market is a volatile market and it is widely agreed among investors an individual should ONLY get involved if he/she has money they can afford to lose and don’t mind losing. DO NOT TAKE ANY ACTION which coulld be detrimental to you based on ANYTHING I say in the discussions on this site. DO NOT RELY ON MY STATEMENTS TO YOUR OWN DETRIMENT.

NOW THAT’s A WARNING!! It’s also why lawyers suck.

I’m not looking to get involved - I’m not rich enough to fund a lawsuit like that. I’m solo - haven’t practiced with a firm in years. Plus I have a lot of other things on my plate. But it’s a good  idea and maybe a big firm lawyer will see this and run with it. However, I hope my prediction never comes to fruition because it really would be a nightmare. Right now it’s just a nightmare waiting to happen. Maybe someone from the site will read this and add more visible warnings.

If they don’t, I don’t think it will even be necessary to look all that hard for a victim. I’m surprised there’s not already a lawsuit filed against this company (maybe there is?). If my prediction comes true and someone does sue and decides to fight, something will happen with amazing speed. America is one of the most litigious countries on the planet. It surprised me to learn we are #5 but that’s still way up there when you consider America also has the most lawyers. There’s a lawyer for every 300 people in the US. And you can bet there will be plenty of inexperienced, unqualified ambulance chasers who will gladly jump on this for a quick settlement and a 40% fee. (Of course if the client is adequately knowledgeable on the subjects at hand, he will know better than to hire an unqualified attorney for this type of case).

The ideal attorney (IMHO) would be an experienced securities fraud attorney who is also a crypto investor (or at least knows what it is and can quickly pick it up in a general sense) from a boutique firm with at least 50 partners, preferably one in Los Angeles of another big city in CA (liberal). Either that or the same type of attorney in a reputable NYC form with the capability of filing in a CA court.  In fact, the smart ambulance chaser will see the potential and immediately partner with or refer the case to an experienced securities lawyer.   If it quickly becomes a large enough group of people, the big firms will take notice. The original lawyer can either stay involved or take a generous referral fee along with an agreed to percentage of the final settlement or judgment and get out.

Even a solo, crappy ambulance chaser could easily get an initial offer if their client is an idiot. (As a side note, the election of our current President and everything that’s happened since then finally proved something I have argued my entire life - there are WAY more idiots among us than we knew.) ANYWAY, it won’t take long for a reputable lawyer to pick it up. Then more serious attorney will take over and then it’s off to the races! Before you know it, it’s on the news. That’s when the class action lawyers take notice. Then, the first state’s Attorney General gets involved. At that point (if not before), the federal government has no choice but to get involved. And at any point along the way, an old, conservative, idiot judge in a federal appellate court or state Supreme Court could get the case and decide bitcoin is nothing but a scam and make it a crime to purchase or own bitcoin in the US.  It could happen. As I said, look at this country’s idea of a President. Idiots.

I’m not selling or trading anything yet. But I believe it’s well worth watching!

to be on TV then the advert must adhere to some guidelines, and also have some legitimacy (no hiding bhind proxies/ fake addresses) the tv company would have been in contact with the business to set up a deal for airtime

so reporting it to the better business bureau that "meant" to deal with consumer protection would be a first goal. and then once the ball starts rolling lawsuits can begin and having the better busines bureau involved helps the case move along.

if you are a lawyer it might be worth checking out the tv channels best practices policy about what type of adverts it allows because you might also have a case against the tv channel itself. and thus get them on your side if you do a deal not to file against the tv company if they aid the case against the scammer.
but usually if its just about the scam itself it would involve having a "victim" who has actually received financial loss. so until you can find customers of that scammy investment, you should start by concentrating on if the scam has followed the policies of full disclosure of risk and advertising policies that are meant to protect viewers from even seeing such a advert in the first place.

for instance, in the UK a financial firm advertising invstments and savings HAS TO publicise its company registration numbers, of its registration to the government database for just being a company and its financial numbers of being a financial business which would also includ its insurance policy numbers

if a scammer does not have thes registrations. then they would get slapped by a court ordered wet fish. as for america. i believe its state by state stuff involved so if its a national tv station. then the scammy business would have to show its complient in the multiple states the national channel broadcasts across.

but i aint no expert so its worth checking the policies ofthe state, the tv channel and also enquire into the better business bureau

This is advertising. Toothpaste is also recommended to you by pseudo experts.

There are warnings though written in small type. Be careful and think with your head

I think if the small text at the bottom of the page states that there is
a risk they are covered regardless of what the "big picture" message
states. Ive seen commercials for gambling sites and the text at the
bottom is so small it is pointless putting it there.

I think you are spot on.

The biggest problem with these kinds of scams is that when it hits the media it's ALWAYS labelled as "Bitcoin Scam or Bitcoin Ponzi Scheme..etc..) Basically many of the media outlets use it as an opportunity to label Bitcoin as the culprit.

It's almost as ludicrous as blaming car manufacturers for drunk drivers....

Just saw the first U.S. late night (really early morning at 2:25 am)  commercial on how to become a millionaire with bitcoin. At least the first time time I ever saw it and I watch a lot of TV (insomnia). This company is such a complete  scam! Here comes a big load of Joe Q. Publics  looking for quick riches.

Here’s the problem: They don’t even mention the word risk or warn about losing money until u get to the very bottom of the page - after all the millionaire claims. But it gets worse, if you have already decided u want to be a bitcoin millionaire just from watching the commercial, when you go to the page, there’s a giant “Purchase Now” at the top of the page. Many will never even see the warning.

I know a lot of people will say “Anyone who  falls for that shit deserves to lose some money and I’m here to take it!” And others will probably say “Good! The more the merrier! It will help Bitcoin become more mainstream - especially in the broader USA and that’s a good thing!”

IT’S NOT. It won’t take long for some idiot to lose his savings or work expense account or welfare money or whatever and, because it’s the good ole USofA, there will be many, many lawsuits. THATS DANGEROUS because even one lawsuit will open the door for judicial regulation of bitcoin in the U.S. which would NOT be a good thing fo SO many reasons. It could even lead to an abrupt end of bitcoin’s future in the U.S. markets.

I’d LOVE for someone to preach some sense into me but, as a lawyer, trust me, the lawsuits - even large class action suits - will be filed against companies like this one. The scariest thing of all would be if the current Congress gets hold of the issue. . The majority of the leaders in both parties are so old there are probably some who’ve NEVER even used a computer - of any type! Moreover, the US government is already operating like an insane asylum. There’s no way to predict what crazy shit they or, Trump, would do. If they decide to intervene, it would most likely be a disaster for U.S. crypto investors. If you’re interested in checking out the site, it’s unlockbitcoin.com. Someone please tell me why I’m all wrong!!