North Carolina Bans BitConnect

BitConnect was ordered to cease and desist from offering for sale in or from North Carolina
11 January 2018   1100

The Securities Division of the North Carolina Department of Secretary of State issued on January 9 a temporary order to cease and desist to Bitconnect.

BitConnect was ordered to cease and desist from offering for sale in or from North Carolina, any securities unless and until such securities have been registered and BitConnect, and any person or entity under the direction or control of BitConnect, is properly registered as a securities dealer or salesman.

According to the order, BitConnect was not registered as a dealer or salesman of securities in North Carolina and offered investments called the BitConnect Lending Program and the BitConnect Staking Program.

It also stated that BitConnect had omitted to disclose material facts when offering these investments in North Carolina. These activities are in violation of the North Carolina Securities Act. The Temporary Order to Cease and Desist gives BitConnect 30 business days in which to request a hearing.

Earlier in January, the Texas Securities Board handed the investment platform a similar cease and desist order, barring the company from operating within the state. The British Registrar of Companies has also sent an official legal notice to BitConnect, warning to shut down the company and dissolve its operation.

FBI to Investigate Bitconnect Activity

This is told by former investor and promoter of the project
07 March 2018   246

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.