January 17 on the official website of the project there was an announcement about the closure of the platform:
Recall that relatively recently the BCC currency co-currency was in the Top 10 of the world’s cryptocurrency, but now the BitConnect has a capitalization of $ 144 million and is ranked 126 in the overall rating.
The project was launched at the beginning of last year, when the company conducted an ICO, after which the cost of the cryptocurrency flew from $ 0.17 to $ 400 (2353 times). Back in December, BCC ranked 7th in the world’s rating of crypto-currency, enjoying great popularity in the community.
The BitConnect crypto exchange offered various services, including mining, deposits, loans in digital currencies, referral programs, etc. But, unfortunately, the company could live only a year.
In December 2017 Vitalik Buterin published a video from one of the BitConnect meetings, where the speaker behaved strangely enough, and the general picture resembled the assembly of some forbidden sect.
After another month (January 9), BitConnect’s activities were banned in the state by order of the Securities Division of the Department of State Secretary of North Carolina. According to which the company no longer had the opportunity to offer securities (in particular the BitConnect Lending Program and the BitConnect Staking Program) for purchase and sale until it is officially registered as a dealer. In addition, BitConnect also violated North Carolina law by not disclosing full information about all its investment proposals.
Earlier (January 4), the Texas Securities Board described its position on BitConnect in more detail. First, representatives of the Council were alarmed by the fact that the company does not publish financial statements in open access and does not specify the address of registration in the UK. Secondly, BitConnect promises to its customers an annual profitability of at least 100%, and one of the programs is aimed at profit up to 40% monthly. Thirdly, the company’s securities have not been registered in the state of Texas officially. As a result, the activity of the organization was also banned in this entity.
To date, it is known that employees of the organization are not registered as persons having the right to sell financial instruments. However, the news from the US did not set the unknown founders of the project to a dead end, and they decided to start everything from scratch: it is known that ICO recently launched their second crypto currency called BitConnectX.