Bitconnect (BCC) Crypto Scam Is Finally Over With Final Delisting
Cryptocurrency pyramid scheme Bitconnect is officially dead having been delisted from every single crypto exchange. The Times of India reports that US regulators are also trying to get the promoters' assets seized.
Bitconnect has been dealt the final blow as the notorious cryptocurrency scam has been delisted from all cryptocurrency exchanges.
TradeSatoshi delists BCC coins
Cryptocurrency exchange desk TradeSatoshi announced last month that it would be delisting Bitconnect and its BCC tokens from its platform and it has now followed up on its promise.
The delisting by TradeSatoshi on September 10 means that the token is no longer available on any cryptocurrency exchange.
Even though no cryptocurrency exchange trades it now, Bitconnect can still be seen on CoinMarketCap, with no trading volume recorded over the past 24 hours.
Bitconnect was a cryptocurrency pyramid scheme that originated from India. The platform promised its investors 1% daily rewards, referral commissions, and similar offers.
The rise of cryptocurrencies has seen a lot of people invest their funds in schemes like this while also encouraging others to join the platform.
Investors sent their BTC to the firm and were given BCC coins in return, which they could trade and on which they received interest. They were able to attract thousands of investors by promising to give them 800% returns annually.
The scheme, however, fell apart as those behind the project were unable to pay their investors the promised returns.
Back then, Ethereum and Litecoin founders, Vitalik Buterin and Charlie Lee warned investors against the Bitconnect platform as they tagged it a Ponzi scheme. They weren’t the only ones, with Michael Novogratz noting that the platform really seems like a scam.
The Texas State Securities Board back then issued a cease and desist letter to Bitconnect, ordering them to shut down their operations in the state as they are not registered with the securities commissioner.
U.S authorities urge India to seize assets of Bitconnect promoters
Investors from the U.S were affected the most by the Bitconnect scam.
Thus, it is no surprise that authorities of the U.S. states of Illinois and Arizona urged India’s Criminal Investigation Department (CID) officials in Gujarat to seize the properties of promoters of the scheme.
The report by the Times of India yesterday, September 11 stated that the promoters were suspected to have made Rs 41,000 crore or $5.66 billion from the fraudulent scheme.
The CID investigators handling the case revealed that two Bitconnect promoters, Satish Kumbhani, and Divyesh Darji, started their operations towards the end of 2016 following the country’s demonetization.
The officials also revealed that Darji raked in a commission of 10% on investments he brought in. His fluent English and social welfare programs helped him gain influence and he brought in more than $566 million worth of investment into Bitconnect.
The police are applying for an arrest warrant for Kumbhani as they are currently tracking him down.
After Bitconnect closed its doors, several users in the U.S filed action lawsuit against the company as they sought compensation for their lost funds.