CoinDesk reports that legal action has been taken against a group of individuals who allegedly defrauded their victims using the altcoin Cachecoin.
According to its website, Cachecoin says it’s “changing the way people use currency.” It is Scrypt-based and says it wants to improve the altcoin ecosystem through various added features and functionality.
The plaintiffs, represented by Akerman LLP, have taken their claims to a Florida court requesting trial by jury. The defendants allegedly marketed mining devices claimed to be in development which they would fund through pre-order sales to customers. Orders were not fulfilled, staff were unresponsive and only partial refunds were issued, according to the allegations.
2020 Global Market Outlook: How the “Known Unknowns” Can Affect CurrenciesGo to article >>
In addition, customers were offered a discount if purchasing with cachecoins. The alleged fraudsters used this as a means to pump their price through increased demand, causing cachecoin holders to incur losses when the coin was later dumped.
Two plaintiffs claimed to have purchased quantities of cachecoin worth $30,000 and $18,000.
Cachecoin (CACH) trades on Cryptsy against bitcoin. At its peak in early March, it was worth nearly 0.008 BTC and had a market cap of $1.25 million. It has since lost 99.9% of its bitcoin-denominated value, currently trading at 0.000008 BTC ($0.00248) on a 24 hour volume equivalent to $3. Its market cap is now $825, ranking it 449th among cryptocurrencies tracked by coinmarketcap.com.