BitConnect Scam

Update: Emergency Cease and Desist Order Issued For BitConnect Scam.

Cryptocurrencies are the hot investment these days. With the rising price of bitcoins, countless people are trying to cash in on the craze. My subscribers have asked me to take a look at BitConnect. Like any commodity, cryptocurrency prices change with supply and demand. At any moment the market can collapse. BitConnect claims to step in and provide stability.

BitConnect Scam Claims

BitConnect is an open source all in one bitcoin and crypto community platform designed to provide multiple investment opportunities with cryptocurrency education where it is entirely possible to find the independence we all desire, in a community of like-minded, freedom loving individuals who, like you, are seeking the possibility of income stability in a very unstable world.

Holding bitcoins exclusively can be a risky investment due to high price volatility. One day the price is up 10% then the next day it’s down 20%, means that an asset is risky to hold. To combat bitcoin price volatility we provide the bitcoin lending module for bitcoin investors, which maintains your asset value and even earn a substantial return on investment.

Here is a video promotion for BitConnect:

BitConnect Scam Presentation Video

BitConnect Scam Reality

Bitconnect LTD was formed in 2016.


Company Number :10278342

Companies Made Simple was used to create BITCONNECT LTD. They are a low cost way for offshore companies to create companies in the UK. There is no way to know where Bitconnect is actually located and who is actually behind it. The people behind Bitconnect are hiding their identities. No information is provided on their website about who they are.

The address provided for BitConnect is a shared office space that provides virtual offices.

Their website was originally hosted in Belize. – Source

BitConnect in their press releases lists Satao Nakamoto as Head of Development.

Satao Nakamoto seems to be a fabricated individual that plays on the name of the suspected creator of Bitcoin: Satoshi Nakamoto.

Here is how BitConnect was originally described on 03-21-2016:

BitConnect is an open-source platform where you can buy, sell and trade bitcoins to the other trusted community members. Bitconnect system members interact directly with each other in a peer to peer fashion, enabling buy, sell or lend operations to all other members. Bitconnect was not formed to be a company nor financial institution but to function as a collective. Our mission is to make Bitcoin the main payment system in use by the world. We propose bolstering bitcoin acceptance by providing this peer-to-peer community where all members interact directly with each other. To accomplish this, we have provided you with several modules designed to connect you to our marketplace. Some of these modules include Buying, Selling, Lending, and listings services (where we act as the bitcoin payment custodian on your behalf.) Bitconnect has designed these modules from the ground up to provide extensive verification and security so that the highest ranked service providers are promoted first, providing an opportunity for honest participants to earn **********al income or procure bitcoin through our product offering.

How does Bitconnect System work?

Bitconnect system is divided into four major modules. They work independently of one another but do contain a linked integrated feedback system used to enforce quality and reputation parameters on the system. Each Bitconnect member receives a feedback for each completed transaction for each given module.

Bitcoin lending platform (Community Lending)

Bitconnect members can potentially earn Bitcoin through peer-lending to other trusted community members. Using our Peer rating system, we can help you best identify potential microloan opportunities to earn a substantial return on your investment! Let us do the hard work of vetting qualified collateral holders so you can rest easy and let your investment do the heavy lifting.

Bitcoin trading platform (Buy and Sell Bitcoins)

Bitconnect Trading Module allows members to exchange their bitcoins to other trusted community members. Only qualified community members may use the trading module to create trade advertisements with the exchange rate and mode of payment they prefer. All other bitconnect members can browse these trade advertisements to buy or sell bitcoins.

To post trade advertisement, all members are required to unlock this feature by gathering a minimum of 500 transaction feedbacks from the community, through utilizing the Bitcoin Lending module, no exceptions.

Bitcoin e-commerce platform (Buy and Sell Products with bitcoins)

This third bitconnect module allows the ability to create listings for other members to buy or sell your goods & services using bitcoin as a payment processor. To become a registered vendor you need minimum 1000 transaction feedback from previous modules to submit product listings through seller portal. This is necessary for trust verification set by the Bitconnect system.

Bit Store (Local bitcoin store)

Bitconnect final module is called a BitStore. This is an official Bitconnect store equipped with bitcoin ATM to serve the local community. As this level has special functionality, all accounts must be verified and peer-determined and limited in issue. – Source

Their story has changed recently. They now offer their own cryptocurrency and they are now a company.

The Bitconnect cryptocurrency looks to be legitimate. In my opinion, it is just the cover for their Ponzi scheme lending program.

The real heart of this scam is the Bitconnect Lending Program. This is where you earn daily interest on your investment.

Here is how the scam works:

  • You deposit your bitcoin with them.
  • You buy the BitConnect Coin from the exchange.
  • You invest your BitConnect Coin in BitConnect Lending.
  • You earn daily profits.

There is no income other than new investor money to produce their daily profits. In my opinion, this is a clear Ponzi scheme.

They artificially increase the value of the BitConnect Coin by having people exchange their bitcoin for the BitConnect Coin and then have them invest in the Ponzi scheme lending program.

To expand the amount of people in this scam, BitConnect has a recruiting program where they provide 7 Levels of earning potential to you based on the number of people recruited. You earn a commission every time your referral lends Bitconnect Coin. The commission you earn is based on the tier you have achieved in their referral program as shown below:

You must be an active lender on BitConnect to earn bitcoins from lenders you refer through the recruiting program.

Many Ponzi schemes share common characteristics. Look for these warning signs:

  • High investment returns with little or no risk. Every investment carries some degree of risk, and investments yielding higher returns typically involve more risk. Be highly suspicious of any “guaranteed” investment opportunity.
  • Overly consistent returns. Investment values tend to go up and down over time, especially those offering potentially high returns. Be suspect of an investment that continues to generate regular, positive returns regardless of overall market conditions.
  • Unregistered investments. Ponzi schemes typically involve investments that have not been registered with the SEC or with state regulators. Registration is important because it provides investors with access to key information about the company’s management, products, services, and finances.
  • Unlicensed sellers. Federal and state securities laws require investment professionals and their firms to be licensed or registered. Most Ponzi schemes involve unlicensed individuals or unregistered firms.
  • Secretive and/or complex strategies. Avoiding investments you do not understand, or for which you cannot get complete information, is a good rule of thumb.
  • Issues with paperwork. Do not accept excuses regarding why you cannot review information about an investment in writing. Also, account statement errors and inconsistencies may be signs that funds are not being invested as promised.
  • Difficulty receiving payments. Be suspicious if you do not receive a payment or have difficulty cashing out your investment. Keep in mind that Ponzi scheme promoters routinely encourage participants to “roll over” investments and sometimes promise returns offering even higher returns on the amount rolled over. – Source


$100 to $100,000 for the Bitconnect Lending Program



Compensation Plan

Click Here for the BitConnect Lending Program compensation plan.

Income Disclosure

The daily profit is not guaranteed. The interest rate that you earn daily using our investment platform is calculated by our BitConnect Price Volatility Software and accrued daily. Some days, the profit may be 0%.

Refund Policy

They offer no refunds.

BitConnect Scam Conclusion

In my opinion, BitConnect uses a cryptocurrency as a cover for running a Ponzi scheme. They provide daily interest on an investment that has no income other than new investor money. They artificially increase the value of their cryptocurrency by having new investors in the Ponzi scheme purchase their coin first before investing. They hide the identity of the owners of this scam by using an offshore company that was created through Companies Made Simple.  They expand the amount of people in this Ponzi scheme by offering a recruiting program that pays a commission 7 levels deep for recruits.

Here is a second warning about BitConnect:

Bitconnect Scam Warning Video