Bitconnect

Bitconnect: Cryptocurrency Platform & Lending Program

Cryptocurrency platform and lending program abruptly shut down in January 2018 amid accusations of being a Ponzi scheme, promising high returns for Bitconnect Coin lending.

What is Bitconnect?

Bitconnect was a cryptocurrency platform and lending program launched in 2016 that promised users high returns on their cryptocurrency investments. The company issued its own cryptocurrency called Bitconnect Coin (BCC) and operated a lending platform where users could lend their BCC back to the company.

Bitconnect promised returns of up to 40% per month for lending them the coins. They claimed to generate these returns through their secretive and opaque trading bots and volatility software. However, many experts accused Bitconnect of being a textbook Ponzi scheme.

In January 2018, Bitconnect abruptly announced it was shutting down its lending platform after receiving cease and desist letters from regulators in Texas and North Carolina. The value of BCC crashed from over $400 to under $20 as users raced to sell their coins, leading to losses of hundreds of millions of dollars.

In the aftermath, Bitconnect was hit with numerous lawsuits alleging fraud and theft. Promoters of Bitconnect are also facing charges. The saga of Bitconnect is often held up as an example of the exaggerated claims and outright scams that have plagued the cryptocurrency world.

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