For those who are uninformed, in spite of the fact that the platform’s business model visibly resembled a classic pyramid scheme (1% daily rewards, referral commissions, etc.,), numerous immature people still fell prey to the impractical gains that were touted in promotions from the firm while also attempting to persuade others to invest in the Bitconnect scheme.
Apparently, there were crypto investors who took to social media platforms to warn people that the ‘investment’ platform was a scam.
As it usually happens, the firm which ran the dubious project fell apart after failing to disburse the guaranteed profits, and consequently issuing a statement saying that the ‘service’ it offered is no longer available.
Even after categorizing the project as a rip-off, a lot of hardly known cryptocurrency exchanges continued to offer support for BCC tokens, the native crypto token of the now-obsolete Bitconnect ecosystem. One of the cryptocurrency platforms that offered BCC tokens was TradeSatoshi.
Back in august, the cryptocurrency exchange announced that it would delist BCC on September 10. On the day of delisting, TradeSatoshi stated “the day has finally come.” Even before that the trading volume dropped to almost zero. Notably, Bitconnect continues to be listed by CoinMarketCap, one of the prominent sites in the crypto space, despite stamping the project as a scam some seven months before.
US Regulators ask Indian Authorities To freeze Bitconnect’s property
In other related news, according to the report by The Times Of India, the lawsuit has been prepared, with regulators in Illinois and Arizona calling for the seizure of properties related to the scam.
Per the report, Bitconnect had swindled more than $5.6 million worth of cryptocurrencies from innocent investors, making it one of the largest noted scams in the cryptocurrency history.
Regarding the case, India’s Crime Investigation Department has issued the following statement:
“Those who invested in this virtual currency company after demonetization are suspected of laundering black money. We will write to the enforcement directorate and income tax authorities to probe such investors.”