BitConnect Scam Closes Creating Community Panic
Time has run out for the BitConnect scam. BitConnect is closing down their primary scam after two cease and desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State.
For the BitConnect Lending Program, investors purchase BitConnect Coins, which are provided to a “BitConnect Trading Bot” to generate returns as high as 40% a month.
Here is the announcement from BitConnect:
Changes coming for the BitConnect system – Halt of lending and exchange platform
This is to inform all community members that we are closing the BitConnect lending and exchange platform. We are closing the lending operation immediately with the release of all outstanding loans. With release of your entire active loan in the lending wallet we are transferring all your lending wallet balance to your BitConnect wallet balance at 363.62 USD. This rate has been calculated based on last 15 days averages of the closing price registered on coinmarketcap.com. You are free to withdraw your BitConnect coin currently in QT wallets that was used for staking as well. We are also closing BCC exchange platform in 5 days. In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes.
The reason for halt of lending and exchange platform has many reasons as follow:
- The continuous bad press has made community members uneasy and created a lack of confidence in the platform.
- We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division. These actions have become a hindrance for the legal continuation of the platform.
- Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.
Closing the lending and exchange platform doesn’t mean that we will stop supporting BitConnect coin. Closing the lending platform will allow BitConnect to be listed on outside exchanges giving more options for trading.
We will keep working to make BitConnect coin available to merchant websites providing them API access to accept BitConnect Coins on their platforms.
BitConnect X ICO is still functional and we are building an exchange platform on the BitConnect X website. With BitConnect X operating as an exchange platform, BitConnect Coin (BCC) will be listed there.
This is not the end of this community, but we are closing some of the services on the website platform and we will continue offering other cyptocurrency services in the future.
The Team BitConnect
– Source bitconnect.co
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.