BitConnect , an anonymously - run cryptocurrency loaning and exchange platformlong suspectedof being a well - marketed Ponzi strategy , abruptly ceased operation on Tuesday after receiving cease - and - desist orders from authority in Texas and North Carolina .
Per Bloomberg , theTexas State Securities BoardandNorth Carolina Secretary of State Securities Divisiontold BitConnect it “ is n’t registered to trade securities in those states . ” Texas regulator warned that “ Despite providing no information on how it will make money for investor — including the algorithms behind the Trading Bot — BitConnect is touting its investments as a ‘ good manner to earn a high-pitched rate of return . ’ ”
However , in a blog office , the caller alleged that additional reasons were to blame , including “ uninterrupted bad press ” that “ created a deficiency of self-confidence in the platform ” and “ DDos attacks ” that had “ made the platform unstable and have created more scare in the community . ” It also insist that its nominal , BitConnect Coin ( BCC ) , could be trade on other exchanges .
accord toTechCrunch , BitConnect required users to corrupt into BCC to conduct transactions on the platform and has long promise “ outsized proceeds count on how long the loan was for . ”
BitConnect ’s inclusion of multi - even referral feature led many to suspect it was funding those full-grown income tax return by gouging raw exploiter on purchases of BCC — which began crash in value this calendar month and is potential to keep plump , per TechCrunch :
While the program say they ’re refunding all outstanding loans at a rate of $ 363.62 USD ( an average of the token ’s damage over the last 15 days ) , the Bitconnect keepsake is currently trading down ~80 % and worth less than $ 40 , so while user may have been made whole on a BCC - equivlent , many are surely digest severe fiscal losses in terms of USD or Bitcoin ( which is how they made their original investment ) .
According toTNW , BCC was worth $ 425 roughly 10 days ago but is now worth under $ 30 and continue to slide .
The BitConnect subreddit is now set to individual mood , but acached versionof the board includes a “ LEGAL action at law MEGATHREAD . ” One drug user warned that “ you guy are gon na bring the fucking fed into crypto … just accept you got duped , ” while another rag , “ gift in a ponzi , anticipate to get rekt . expert luck getting your money back , they ’re likely on a beach in Thailand … ”
While the operators of the site have insisted future labor include the BitConnect X ICO will continue , this seems like a reasonably clear case of something that already has a forking stick in it . But hey , you never know — maybe those Kodak KashMinersmight still bear off .
[ Bloomberg ]
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