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According to a BitConnect class-action status report, the parties have settled.

Considering the history of this dispute and the litigation positions of the Parties, it is now doubtful.

Additionally, a Fourth Amended Complaint is being prepared.

Here is the case’s current status following the Eleventh Circuit’s February reversal of an appeal;

Since it appears that there isn’t currently an operational complaint in this matter, the plaintiffs want to file a fourth amended consolidated class action complaint.

The defendants who, by the Eleventh Circuit Court of Appeal’s order, were unjustly discharged as defendants from this case will be included by the plaintiffs in that pleading.

One of the defendants who will be reintroduced into the action in the revised complaint is Glenn Arcaro. Defendant Arcaro will ask for the dismissal and/or a stay of all claims made against him, the plaintiffs have been informed.

In September 2021, Arcaro, BitConnect’s senior executive in the US, entered a plea to charges relating to BitConnect.

Additionally, earlier this year, Arcaro reached a civil fraud settlement with the SEC.

Class-action Arcaro’s defense in the lawsuit is criticized by the plaintiffs, who point to his regulatory legal battles.

Plaintiffs contend that these arguments are unconvincing, do not help to clarify any of the pertinent facts or legal questions in this case, and only serve to prolong the litigation.

Arcaro outlines the rationale for his pending motion for dismissal now that the claim “I didn’t do it” appears to be out of the question.

Based on the ongoing concurrent criminal proceedings and Mr. Arcaro’s forfeiture of any money he earned through the BitConnect program to the federal government, plus interest, Mr. Arcaro plans to submit a petition to dismiss and/or an alternate request to stay.

Through legal actions taken against Arcaro on both a criminal and civil level, more than $56 million have been recouped.

In particular, Mr. Arcaro forfeited almost $57 million in cryptocurrencies while the case was on appeal. The government had acquired the cryptocurrency specifically to pay back BitConnect’s investors, including the plaintiffs.

As long as a request to dismiss is ongoing, there will be an automatic stay under the Private Litigation Securities Reform Act.

Arcaro also seems to be aiming for the Supreme Court.

In the meanwhile, Mr. Arcaro may try to have his petition for a writ of certiorari dismissed.

It’s the first time I’ve heard of Arcaro seeking a Supreme Court review of a lower court’s ruling.

I decided to look up the case and discovered that on June 22nd, Arcaro requested a deadline extension to submit his writ of certiorari.

Justice Thomas approved Arcaro’s request on June 28th, giving him till September 19th to submit.

Arcaro’s sentence was been delayed to September 16th by an order in his criminal case.

According to Mr. Arcaro, the matter will be resolved or, at the very least, the questions that need to be tested will be narrowed with the outcome of the threshold problems made by the motions to dismiss and stay as well as by his Petition for Writ of Certiorari.

The case also names Ryan Maasen, a proponent of BitConnect. He doesn’t oppose it, but he also doesn’t appear to have contributed to the Joint Status Report’s preparation.

Despite not having legal counsel, defendant Ryan Maasen has given his contact information and been included in correspondence about this Joint Status Report and Proposed Scheduling Order.

looking ahead

Class-action The Eleventh Circuit’s ruling will be challenged in the Supreme Court by Arcaro (I have a feeling this depends on his sentence), Plaintiffs will file their Fourth Amended Complaint, Arcaro will file a motion to dismiss, and if the case is not resolved, both parties have asked for a June 12th, 2023 trial date.

I’ll keep an eye on the court docket for developments.

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