Is it possible that BitConnect is back?

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Judging by recent Crypto Twitter activity, it seems like the biggest scam in the cryptocurrency ecosystem – BitConnect, might be back! 

BitConnect 2.0

A new Twitter profile called Bitconnect2.0, has just joined Twitter on May 2019. Their bio reads “Cryptocurrency Earning Platform” and they seem to be coming from Cayman Islands. Their first tweet is an announcement where they state that Bitconnect2.0 will go live on July 1st:

Obviously, this tweet gained very quick popularity and at the time of writing has hundreds of answers and likes. Mostly the replies consist of memes of Carlos Matos yelling “Bitconnneeeect” and people telling that they cannot believe that BitConnect might be coming back.

Scammers gonna Scam

While this news is just a day old, crypto Twitter has already found some interesting hidden things about this “new” project.

First of all, their new domain bitconnect.io is registred under a company called NameCheap Inc, and their domain expires before their factual launch! The first registration was on June 19, 2017, and it expires on June 19, 2019. But their first tweet says that the platform will go live on July 1st. We expect that they will update the domain expiry date. 

Also, their second tweet is a Binance referral link:

And as expected they wrote a very misleading message along with the referral link, which makes others think that BitConnect might be doing something together with Ethereum. Many tweeters have already notified Changpeng Zhao, the CEO of Binance. They believe that the BitConnect referral link should be eliminated, because of fraudulent actions in the past.

Moreover, people look at this as some sort of a joke, but at the same time they are aware that the recent bullish market activities might be a good foundation to scam new cryptocurrency beginners. And who else to use this opportunity than BitConnect.

The financial pyramid that collapsed

BitConnect Coin launched in 2016. One year after the ICO was in progress, the cryptocurrency value was over $2.5 billion. BitConnect guaranteed investors up to 10% return of their investments, on a month-to-month basis.

In January 2018, the BitConnect Coin market collapsed. Regulators sent letters to investors warning of participation in the project, stating that it was a financial pyramid. Soon the company stopped operating, and investors remained in the hands of a “virtually useless” cryptocurrency.

Recently we reported that the FBI was looking for investors who suffered from this scam to fill out a questionnaire to help the investigation. Also, we reported that there have been some arrests, and one of the main BitConnect promoters Divyesh Darji was arrested in Dubai. 

Source:

https://www.whois.com/whois/bitconnect.io
https://www.bitconnect.io

The FBI is looking for investors who suffered from the BitConnect scam!

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The FBI is asking investors to assist in the investigation of the financial pyramid BitConnect. It was one of the most talked about investment schemes of the recent Bull-market of 2017. Eventually, it led investors to lose billions when the company exit-scammed in January 2018.

The financial pyramid that collapsed

According to the FBI, BitConnect Coin launched in 2016. One year after the ICO was in progress, the cryptocurrency value was over $2.5 billion. Also, the law enforcers report that BitConnect guaranteed investors up to 10% return of their investments, on a month-to-month basis.

In January 2018, the BitConnect Coin market collapsed. Regulators sent letters to investors warning of participation in the project, stating that it was a financial pyramid. Soon the company stopped operating, and investors remained in the hands of a “virtually useless” cryptocurrency.

One of the BitConnect promoters is already behind bars

By previous reports, one of the main BitConnect promoters – Divyesh Darji, is already behind bars in the city Gujarat. As he was returning from Dubai, the Gujarat Criminal Investigation Department arrested him.

“Darji was living in Dubai. He was under a look-out circular. The Immigration Department alerted us when he was on the way from Dubai to Ahmedabad, after which he was arrested today evening. The company came into existence in 2016, and in 2017, it launched the BitConnect coin. It remained active till January this year […] The accused held seminars, events in India and other countries promising high interest — daily interest rate of 1 percent — on investment in BitConnect coins. The cost of one BitConnect coin on January 16, 2018, when the company shut down, was $362”, said the inspector P G Narwade of Criminal Investigation Department (CID-Crime) of Gujarat police.

Fill out a brief questionnaire if you suffered from BCC

However, the law enforcers did not simply establish contacts with investors who became victims of the scheme. According to FBI estimates, investors lost a total of between $2.5 and $3.5 billion. The Specialist Service appealed to citizens with a request for assistance in investigations:

“If you invested in BitConnect, please complete this brief questionnaire. Your responses are voluntary but would be useful in the federal assessment of this matter and to identify you as a BCC investor and/or potential victim. Based on the responses provided, you may be contacted by the FBI and asked to provide additional information.”.

Source:

https://www.fbi.gov/resources/victim-services/seeking-victim-information/seeking-victims-in-bitconnect-investigation

Image from flickr.com

With Christmas approaching, cryptocurrency markets see red candles.

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After a snowy weekend, December 3 hits the calendar, and unwillingly, to all the cryptocurrency traders this makes them reminiscent about the bull run we experienced last year. One year ago, we thought that this was the major crypto adoption, and some of us couldn’t see how that could be going somewhere else, but up. ICOs were booming, influencers were in the head of the game, and it almost seemed like you could invest in any of the projects that came out because a x10 profit was self-evident. 

Nothing of that can be said about this December, as we open up coinmarktetcap.com, and yet again we see only red accents. Market cap was three times larger than now, and already we can see some significant changes in the top 10 most popular crypto-top

Exactly one year ago

bitcoin stock market crash

As we can see, the picture back then was a lot brighter than now. Bitcoin was trading at $11,176, Ethereum was the second largest cryptocurrency, Dash was nr. 5 and BitConnect was still scamming people like nothing. Monero, Bitcoin Gold and IOTA have left the top 10 after a year, but at the same time, Stellar, Tether, EOS and Bitcoin SV have replaced them. You might want to think that there’s nothing changed, but the positions of some cryptocurrencies, but think again.

If we look at the current market cap for each coin which has remained in the top 10 list, we see a staggering decline in value. For example, Bitcoin’s market cap on December 3, 2017, was $186,851,799,628, comparing to today’s $69,929,197,213, which is almost three times less. You can observe the following with other cryptocurrencies as well. Litecoin had $5,443,078,362, but now rests at $1,915,803,929, also, three times less.

The good thing

Let’s not talk about only the bad things we get from these last year statistics and let’s focus on more positive things. For example, the first thing that we can see is successful projects and cryptocurrencies which endured the year-long bear market and managed not only to develop their idea further but to maintain their community’s interest in the project.

The other rather positive thing is that if we look at 24h volume for each coin and compare it with last year, you can see an increase despite the price fall, despite the market cap, which would lead us into thinking that cryptocurrencies today are used more than they were a year ago. Bitcoin’s 24h volume today is $5,164,916,673 which is shy of a billion larger than a year ago when it was $4,826,067,051. Interestingly enough, Ethereum has seen the biggest increase in 24h volume, despite all the FUD whats revolving around it. Last year Ethereum circulated $822,953,290 in volume, but today $1,867,401,151. That is a little over one billion more, which makes you think – then where is all the money at? Ethereum is the absolute leader in increased volume throughout one year.

However, the significant volume increase only applies to the top 3 coins we see today. Others had a minimal increase, some a minimal decrease.

If we made a competition on who lost the most volume in one year – it’s obvious who’d win. BitConnect!

bitcoin stock market crash 2018

Markets today

As mentioned above, today cryptocurrency markets are coloring the picture red, with rare green accents. Bitcoin is trading at $4,017; XRP at $0,36; Ethereum at $113,53 and Stellar, which recently jumped to the no. 4 position going pass Bitcoin Cash, is trading at $0,15. The bear is still winning over the bull, and it doesn’t look like some time soon this is going to change. One of the most surprising assets is Bitcoin SV because in only a couple of weeks it has managed to jump in the top 10 most popular cryptocurrencies and takes a decent share of the market.

However, the good thing is that volume is increasing, and Bitcoin is still the king of crypto, it’s dominance since last year has fallen by only 3%. We need to reconsider how this past year has affected the crypto market, either yourself as a trader/hodler/enthusiast. Can we learn from past problems or not? That is the question. If another bull-run emerges – are we also going to be as blind as during the previous one? Hope not. 

Source:

www.coinmarketcap.com

Photo by Lorenzo Cafaro from Pexels

The promoter of BitConnect pyramid scheme has been finally arrested!

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Divyesh Darji – the man behind the unbelievable crypto pyramid scheme scam called BitConnect (BCC), now is sitting in jail, as he was returning from Dubai. He and his team was scamming millions of dollars from naive Investors. 

Gujarat Police department comments

“Darji was living in Dubai. A look-out circular was issued against him. The Immigration Department alerted us when he was on the way from Dubai to Ahmedabad, after which he was arrested today evening. The company came into existence in 2016, and in 2017, it launched the BitConnect coin. It remained active till January this year. […] The accused held seminars, events in India and other countries promising high interest — daily interest rate of 1 percent — on investment in BitConnect coins. The cost of one BitConnect coin on January 16, 2018, when the company shut down, was $362”, said the inspector P G Narwade of Criminal Investigation Department (CID-Crime) of Gujarat police.


“When this information emerged, Kumbhani and other BitConnect promoters came under the CID’s scanner. In January this year, Kumbhani and other promoters suddenly closed the exchange and became untraceable. Investors lost money as they could no longer withdraw or trade their BCC tokens or coins”, the CID said.

These are all good news, since I believe, the former investors are actively following the court process of BitConnect. And news like these are sending a good message to other past crypto scams. They might receive their judgement as well. At least now they (investors) can sit with a hope that BitConnect will receive a punishment they deserve.

Source:

https://goo.gl/a1QWY4

https://goo.gl/62cJkf

Lawsuit against BitConnect: Youtube added as a defendant

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The lawsuit which was initiated in July 24th states that BitConnect issued crypto tokens that were unregistered securities, and obtained additional funds through a wide ranging Ponzi-scheme. The lawsuit was filed by 6 individuals who claim to have lost around $771,000. 

BitConnect and its affiliates used Youtube to spread their fraudulent investment scheme through videos. Youtube has failed to delist and demonetize the published videos. The top ten affiliates had posted more than 70,000 hours of unedited content which generated around 58 million views.

“This case is not about YouTube being the speaker or publisher of the content on its website. Instead, liability is predicated on YouTube’s failure to act after learning from content directly published on YouTube of the readily foreseeable harm posed by its advertising partners… As the old saying goes: Sometimes when you lie down with dogs, you get fleas” said David Silver of Silver Miller, the firm which represents the 6 individuals in the lawsuit.

The plaintiffs are sure that if Youtube had developed an appropriate search of its databases, it probably would have delisted the harmful activities of BitConnect videos.

The document which has been filed in court, concludes:

“YouTube failed as a gatekeeper to protect its users from, and warn its users of, the very harm YouTube set out to prevent with its advertising protocols and proprietary algorithms.”

Source:

https://goo.gl/ZY8sqm

https://goo.gl/d3aMw2 – court documents