How Much Money Can You Make With Bitconnect

2016–2018 fraudulent cryptocurrency

Bitconnect Money
Bitconnect logo
Code	BCC
Development
Original writer(s)	Satish Kumbhani
Initial release	February xv, 2016^[1]
Evolution condition	Discontinued
Written in	C++ C#
Operating arrangement	Windows, Bone X, Linux, Android, iOS
Source model	Open source
License	MIT License
Website	bitconnect.co (last archived version, 28 Nov 2018)
Ledger
Timestamping scheme	Proof of stake
Cake reward	0.42% every 15 days; 10% inflation per year
Block time	60 seconds

Bitconnect (also spelled BitConnect and stylized bitconnect , ticker code BCC) was an open-source cryptocurrency that was connected with a loftier-yield investment program, a blazon of Ponzi scheme.^[2] ^[iii] ^[4] Afterwards the platform administrators closed the earning platform on January 16, 2018, and refunded the users' investments in BCC following a 92% coin value crash, conviction was lost and the value of the coin plummeted to below $ane from a previous high of nearly $525.

History [edit]

Bitconnect was released in 2016 with the goal of allowing users to lend the value of Bitconnect Coin in return for interest payments. The marquee programme was the and so-called lending platform where users traded Bitcoin for Bitconnect Money and could lock in the instantaneous value of the coin for a gear up menstruum of time while earning interest calculated daily. The involvement payouts were adamant past a then-called "trading bot". The trading bot was the about controversial slice of the Bitconnect.co system.^{[ citation needed ]} The liquidity of the BCC cryptocurrency funded users' power to commutation their earnings for Bitcoin.

On Nov seven, 2017, the government of the Uk issued Bitconnect a notice with ii months to evidence its legitimacy.^[1] ^[5]

On January 3, 2018, Texas State Securities Board issued a cease and desist to the company, calling it a Ponzi scheme, and citing failings in user earnings transparency, and misleading statements.^[ane] Texas State Security Board and North Carolina Secretary of State Securities Division warned that Bitconnect was not registered to sell securities in their corresponding states.^[ane]

On January 17, 2018, Bitconnect shut downwards,^[three] ^[1] and BCC prices crashed past 92% immediately subsequently.^[vi] Bitconnect announced it would refund its loans.^[7] Still, the Bitconnect 10 website^{[ clarification needed ]} remained open and operational, having just begun its ICO and allowing users to buy BCCX coins with their BCC coins.^{[ citation needed ]}

On January 31, 2018, a temporary restraining order froze Bitconnect's avails, expiring on February xiii.^{[ citation needed ]} Notwithstanding, Bitconnect as an entity never actually existed, and so it is unclear what avails Bitconnect has (or always had). An alleged Republic of india-region leader (one level beneath founder) of Bitconnect, Divyesh Darji, was arrested in Delhi, India, on August 18, 2018.^[eight] Information technology is suspected that Darji is connected to well-known criminal entities involved in laundering so-chosen "Black Money" after the Indian government's demonetization of the rupee. In 2019, Darji was arrested and released on bail in connection with a similar scam called Regal Money.^[ix]

Criticism and collapse [edit]

Bitconnect was suspected of beingness a Ponzi scheme^[10] because of its multilevel marketing structure and impossibly loftier payouts (1% daily compounded interest).^[6] ^[seven] ^[11] Bitconnect interest fluctuated profoundly with the volatility of Bitcoin, which its value was tied to.

The Bitconnect Coin was among the world's superlative twenty almost successful cryptocurrency tokens^[12] until its price collapsed after traders began losing confidence. BCC rose from a mail ICO price of $0.17 to an best loftier of Us$463 in December 2017; information technology declined to U.s.a.$0.40 as of March 11, 2019. Bitconnect released outstanding loans at a rate of US$363.62 to the Bitconnect Wallet in form of BCC. However, soon after that news the internal exchange price and liquidity complanate resulting in a nearly complete loss of value.^[7] ^[thirteen] ^[xiv]

Legal issues [edit]

On Jan 16, 2018, Bitconnect announced it would shut downwards its cryptocurrency exchange and lending operation after regulators from Texas and Northward Carolina issued a cease and desist order confronting it.^[15] ^[16] ^[17] ^[18] On January 31, 2018, a U.S. District Court, Western Commune of Kentucky, granted a temporary restraining society freezing Bitconnect's assets and "to disclose cryptocurrency wallet and trading account addresses, too as the identities of anyone to whom Bitconnect has sent digital currencies within the terminal xc days".^{[ commendation needed ]}

In September 2021, the U.South. Securities and Exchange Commission sued Bitconnect, alongside its founder Indian Satish Kumbhani, American Glenn Arcaro who served every bit Bitconnect's lead national promoter in the United states from August 2017 to January 2018, and Future Money LTD, a company Arcaro created to lure into Bitconnect's lending program. The SEC declared that Bitconnect defrauded U.S. investors a total of $ii billion.^[nineteen] ^[xx] ^[21]

Parallel to SEC civil charges, the United States Section of Justice had initiated criminal charges against Arcaro. On September 1, 2021, Arcaro pleaded guilty of criminal charges pressed by DOJ which includes conspiracy to commit wire fraud and criminal forfeiture.^[22] The DOJ also indicted Kumbhani on various federal charges in February 2022, including coin laundering and fraud.^[23] ^[24]

Internet meme [edit]

On October 28, 2017, Bitconnect held its first (and simply) annual ceremony in Pattaya, Thailand. During the outcome, an investor named Carlos Matos from New York City gave an exuberant presentation and testimonial most the website, which included him intensely screaming "Bitconnect" several times;^[25] the scene quickly became an Internet meme. Both Matos' meme and the questionable practices of Bitconnect were profiled by John Oliver and Keegan-Michael Key on the program Last Week Tonight.^{[ citation needed ]}

See besides [edit]

List of cryptocurrencies
OneCoin
PlusToken
USI Tech

References [edit]

^ ^a ^b ^c ^d ^east "What is BitConnect (BCC) and how does it work?". Finder.com. January two, 2018. Archived from the original on January 25, 2018. Retrieved January thirty, 2018.
^ Mix (January 17, 2018). "How BitConnect pulled the biggest exit scheme in cryptocurrency". The Next Web. Archived from the original on January 31, 2018. Retrieved January 30, 2018.
^ ^a ^b Wieczner, Jen (January 17, 2018). "Bitcoin Crashes to Below $ten,000 as Cryptocurrency Scams Scare Investors". Fortune. Archived from the original on January 27, 2018. Retrieved Feb x, 2018.
^ "Seeking Victims in Bitconnect Investigation". Federal Bureau of Investigation . Retrieved January iv, 2021.
^ "BITCONNECT LTD - Filing history (free information from Companies Firm)". beta.companieshouse.gov.great britain.
^ ^a ^b Williams, Sean. "BitConnect, Alleged Crypto Ponzi Scheme, Shutters Its Lending and Exchange Services and Plunges 92%". The Motley Fool. Archived from the original on January 18, 2018. Retrieved January 18, 2018.
^ ^a ^b ^c Tepper, Fitz. "Bitconnect, which has been accused of running a Ponzi scheme, shuts down". TechCrunch. Archived from the original on January 18, 2018. Retrieved January 18, 2018.
^ Osborne, Charlie. "Alleged head of BitConnect cryptocurrency scam arrested in Dubai - ZDNet". Retrieved October 27, 2018.
^ "Bitcoin millionaire 'on the run' later second cryptocurrency scam". June v, 2019.
^ Popper, Nathaniel; Bowles, Nellie (2018). "Bitcoin Falls Below $10,000 every bit Virtual Currency Bubble Deflates". The New York Times. ISSN 0362-4331. Archived from the original on January 18, 2018. Retrieved January xviii, 2018.
^ Cheng, Evelyn (January 17, 2018). "Digital currency plunge may be healthy for cryptocurrency market place". CNBC. Archived from the original on January 18, 2018. Retrieved Jan 18, 2018.
^ Williams, Sean (July 20, 2017). "The 20 Largest Cryptocurrencies by Market place Cap". The Motley Fool . Retrieved June 22, 2018.
^ "Changes coming for the Bitconnect arrangement - Halt of lending and substitution platform". BitConnect. January sixteen, 2018. Archived from the original on Jan 18, 2018.
^ Bhargav, Sushant (Jan 16, 2018). "Bitconnect Shut Down it'due south Lending Platform Officially for Good". TechScoop.in. Archived from the original on January 18, 2018. Retrieved January eighteen, 2018.
^ McKay, Tom (January 17, 2018). "BitConnect, Anonymously-Run Crypto Exchange, Crashes After States Upshot Stop and Desists". Gizmodo. Archived from the original on January 17, 2018. Retrieved January 17, 2018.
^ Kharif, Olga (January xvi, 2018). "BitConnect Closes Exchange as States Warn of Unregulated Sales". Bloomberg. Archived from the original on January 17, 2018. Retrieved January 17, 2018.
^ Swearingen, Jake (Jan 17, 2018). "The Rise and Fall of BitConnect, the Sketchiest Crypto Exchange". Select All. New York Magazine. Archived from the original on Jan 17, 2018. Retrieved Jan 17, 2018.
^ "Crypto News Update". NASDAQ.com. January 17, 2018. Archived from the original on Jan 17, 2018. Retrieved January 18, 2018.
^ Michaels, Dave (September ane, 2021). "SEC Sues BitConnect and Founder, Alleging Massive Cryptocurrency Scam of Earth-Wide Investors". Wall Street Journal. ISSN 0099-9660. Retrieved September 2, 2021.
^ https://www.sec.gov/litigation/complaints/2021/comp-pr2021-172.pdf^{[ bare URL PDF ]}
^ "Cryptoexchange founder accused of defrauding investors of $two billion". world wide web.cbsnews.com . Retrieved September ii, 2021.
^ "The states SEC charges Indian denizen for bitcoin scam". September v, 2021. {{cite spider web}}: CS1 maint: url-status (link)
^ Barrabi, Thomas (March two, 2022). "BitConnect founder indicted in $2.4B Ponzi scheme has disappeared, SEC says". New York Postal service. Retrieved March two, 2022.
^ "BitConnect Founder Indicted in Global $ii.4 Billion Cryptocurrency Scheme". www.justice.gov. Feb 25, 2022. Retrieved March 6, 2022.
^ Paez, Danny. "'Bitconnect Carlos' Meme Is Everything Wrong With Cryptocurrency Hype". Inverse . Retrieved January xvi, 2019.