BitConnect Disconnects Lending and Exchange Platform

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Sead Fadilpašić

Journalist

Sead Fadilpašić

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Sead specializes in writing factual and informative articles to help the public navigate the ever-changing world of crypto. He has extensive experience in the blockchain industry, where he has served...

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June 26, 2023 06:53 EDT

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Accused of being a scam, crypto community platform BitConnect has announced it is closing down its lending and exchange platform. The statement goes on to suggest that BitConnect will now operate solely “for wallet service, news and educational purposes.”

“Bad press”, two Cease and Desist letters, and DDos (distributed denial-of-service) attacks on the platform was the reason to halt some services, according to the announcement.

Earlier, BitConnect has been marred with accusations of running a Ponzi scheme by the founders of Litecoin and Ethereum, who had taken to Twitter to warn against using the investment site. They were joined by many other leading figures in the crypto community, like Jameson Lopp and Erik Voorhees. The general consensus comes down to the whole operation being little more than a pyramid scheme. The public seems happy with this shutdown: as Reddit user u/libertarian0x0 commented, “Just be positive: if this dip has made Bitconnect disappear, [it’s] worth the bleeding!”

In November 2017, the UK Registrar of Companies threatened to shut down the dodgy platform and dissolve its operation unless “cause is shown to the contrary” within two months. The cease and desist letters also come as no surprise: known in the United States as a law enforcement state, the Texan emergency cease and desist letter of January 4th, 2018, concludes that “respondent BitConnect’s conduct, acts, and practices threaten immediate and irreparable public harm”. Shortly thereafter, North Carolinafollowed. In the face of all these legal issues, it seems BitConnect simply had no other choice than to shut down.

On top of all this, it seems its once-passionate promoters are nowin search of greener pastures: Glen Arcano, once listed as a BitConnect director, was among the first to purge his YouTube channel and make an exit, quickly followed by Trevon James, CryptoNick and other well-known affiliates.

But despite all-around happiness that a known scam has come to its end, spare a thought for Bitconnect bag-holders who are facing extreme losses through this turn of events.