What happened to BitConnect?

On January 17, 2018, Bitconnect shut down , and BCC prices crashed by 92% immediately after. Bitconnect announced it would refund its loans. However, the Bitconnect X website remained open and operational, having just begun its ICO and allowing users to purchase BCCX coins with their BCC coins.

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Was BitConnect a scheme?

“As alleged in the indictment, however, BitConnect operated as a Ponzi scheme by paying earlier BitConnect investors with money from later investors,” the Justice Department said in a statement. Kumbhani and his co-conspirators allegedly made about $2.4 billion in the scheme.

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Is BitConnect closed?

BitConnect used money from new investors to pay earlier ones and also operated as an unlicensed money transmitting business, the U.S. said. BitConnect closed its exchange in January 2018 after getting cease-and-desist letters from state regulators in Texas and North Carolina.

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