BitConnect Platform Shuts Down Following Regulatory Warnings

BitConnect, the lending and exchange platform that was long suspected by many in the crypto community of being a Ponzi scheme, has announced it's shutting down. 

The company, will close in 5 days according to their announced on its website published on Tuesday.

“In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes,” the post explained.

The announcement blames a myriad of factors, perhaps most notably the "cease-and-desist" letters issued in recent days from regulators in Texas and North Carolina and continuous DDoS attacks on the platform. 

“We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division,” the BitConnect team wrote. “These actions have become a hindrance for the legal continuation of the platform.”

Their post also, blamed "bad press" that has "made community members uneasy and created a lack of confidence in the platform".

Yet, BitConnect said that its in-progress initial coin offering (ICO) will continue and that it is building an alternative exchange for the BitConnect token.

“This is not the end of this community, but we are closing some of the services on the website platform and we will continue offering other cyptocurrency[sic] services in the future,” the team wrote.

 

Source

Image via BitConnect.

 
 

Posted on: 17/01/2018