How BitConnect pulled the biggest exit scheme in cryptocurrency

The plaintiffs are seeking a jury trial, which would result in damages being levied against the defendants if they are successful. Other than educating prospective investors about BitConnect, the sketchy marketers engaged in copious amounts of blatant shilling for the dodgy investment platform and its BCC coin. But despite its meteoric growth and burgeoning user base, the investment platform attracted a swarm of naysayers with its suspicious business model, which vocal critics repeatedly labeled a Ponzi scheme.

Bitconnect: Bitcoin Community-Earn, Buy, Sell and Trade

There have been three companies called Bitconnect set up in the. What looked too good to be true ended up being just that, as Bitconnect has all but closed its doors. Despite these warnings, BitConnect continued to pick up momentum. Florida residents Andrew Kline, Dusty Showers and Lena Hunt, along with Rhode Island resident Charles Mabra, filed the lawsuit in the.S.

BitConnect coin - Bitcoin News, Crypto Currency News, Bitcoin Price

Sketchy Ponzi offerings, since its inception in January 2017, many were skeptical about Bitconnect services. 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 sic. An image used by BitConnect to explain how its affiliate program works nothing suspicious about the example, of course. Less than two weeks ago, BitConnect got slapped with a cease and desist letter from the Texas Securities Board, ordering the company to close down its operation and cut distribution of BCC at least until it had worked out an agreement with the Securities Commissioner. On Tuesday this week, the British firm behind a cryptocurrency called Bitconnect (BCC) announced that it was closing down its lending and exchange platform.

Families left penniless in Bitconnect crash after Bitcoin bloodbath

In an email to CoinDesk, one BitConnect investor, who claimed to have lost upwards of 400k, reported being unable to cash in BCC tokens via the exchange. This is how deep the impact of BitConnects fraudulent operation.

BitConnect Investors Left in the Lurch as Token s Price Drops

But while this sudden curveball might have come as a massive surprise for thousands of gullible investors, the writing was on the wall all along. The mix of regulatory scrutiny and "bad press" was ultimately blamed for the platform shutdowns. . Among the defendants cited in this instance are BitConnect director Glenn Arcaro and affiliate Ryan Maasen, as well as other unknown entities involved in the alleged Ponzi scheme. Indeed, some of the ire has also been directed at posters who advocated for BitConnect, with some of those being accused of removing positive videos in light of the platform closures. The coin launched at the beginning of last year and went from being worth less than a cent to being valued at more than 400 (287 with the total BCC market worth about.7 billion (1.9 billion).