BitConnect Shuts Down Crypto Exchange Platform

Right after the announcement the price of BitConnect coin fell from $215 to $21
17 January 2018   1875

Bitconnect published a post on its website on January 16 stating that the company is closing the Bitconnect lending and exchange platform. According to the company, BitConnect’s lending service will be shuttered immediately with the release of all outstanding loans, while its exchange platform will be closed in 5 days.

The company provided three main reasons for halt of lending and exchange platform: the continuous bad press that created a lack of confidence in the platform, two Cease and Desist orders from Texas and North Carolina and DDos attacks on platform.

Bitconnect also stated that despite the closing of lending and exchange service the company will continue offering other cryptocurrency services in the future.

In December, Ethereum founder Vitalik Buterin and Litecoin founder Charlie lee, have spoken up against Bitconnect, calling it a Ponzi scheme.

Charlie Lee Bitconnect

Burerin Bitconnect

Right after the announcement, the price of BitConnect coin fell from $215 to $21.

Bitconnect ChartsBitconnect Charts

At the moment of press, these are the main market parameters of Bitconnect:

  • Average Price: $24,03
  • Market Cap: $151 368 370
  • 24h Volume: $10 674 100

FBI to Investigate Bitconnect Activity

This is told by former investor and promoter of the project
07 March 2018   668

Trevon James, a former investor and promoter of the BitConnect crypto currency project, said that the agents of the US Federal Bureau of Investigation interrogated him about his involvement in the company's activities. This is reported by CoinDesk.

James said that in 10 days he should "testify and tell about his role in BitConnect", but did not specify in which format the hearings will be held. He also added that he never had information about the company's plans and the road map.

According to the ex-promoter, he expects that the testimony will be in the same format as his one and a half hour "conversation" with FBI agents, during which he told about his experience with BitConnect as a user.

It's really about the SEC. Testimony is really important you know, for the entire crypto space because ... it's about securities. Is Bitconnect a security, are cryptocurrencies, can they be considered securities? That's what it's about, it's not about whether I scammed people.

Trevon James 

Former investor and promoter, BitConnect

It should be noted that in the middle of January the crypto exchange project BitConnect announced the closure of the program of lending and exchange. The reason for this step was the two official resolutions on the termination of activity from the regulators of the states of Texas and North Carolina. Subsequently, two lawsuits were also filed against BitConnect.