BitConnect is shutting down its lending and exchange platform

Following months of red flags, Bitcoin investment platform BitConnect – which has long been suspected of running a Ponzi scheme – has officially announced its platform is shutting down.

In a blog post – titled “Changes coming for the Bitconnect [sic] system – Halt of lending and exchange platform” – released on its official website, the company said that is “closing the Bitconnect [sic] lending and exchange platform.” The website has since gone down.

The statement goes on to suggest that BitConnect will now operate solely “for wallet service, news and educational purposes.”

“We are closing the lending operation immediately with the release of all outstanding loans,” the statement read. “With release of your entire active loan in the lending wallet we are transferring all your lending wallet balance to your BitConnect wallet balance at 363.62 USD [sic].”

This rate has been calculated based on last 15 days averages of the closing price registered on coinmarketcap.com,” it continued. “You are free to withdraw your BitConnect coin currently in QT wallets that was used for staking as well. We are also closing BCC exchange platform in 5 days.”

“In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes,” it ended.

Those interested to see the full statement can refer to a screenshot captured by independent Twitter sleuth @BCCPonzi, who has been documenting the investment platform’s shady business for months.

Here is also a screenshot of the BitConnect shut-down announcement we were able to snag during some short uptime:

According to the statement, the company will “continue offering other cryptocurrency services in the future.” The equally questionnable BitConnect X ICO – which was explicitly named in a cease and desist letter served by the Texas Securities Board – will remain “functional.”

BitConnect claims that its BCC coin will still be “listed on outside exchanges” and “merchant websites.” Meanwhile, it has taken a massive dip to $144, as per CoinMarketCap.

Prior to this development, the shady Bitcoin investment scheme was mired in a litany of legal troubles, including cease and desist orders from the UK in November, as well as two more from from the US this month – one from the Texas Securities Board and one from the North Carolina Securities Division.

Leading up to the announcement, BitConnect promoters suddenly began distancing themselves from the project. Coincidentally, the website was struggling with a series of server downtime – all of which began shortly after the cease and desist orders rolled in.

Update from Bitconnect:

They have sent this email out to help soothe peoples outcry.

Bitconnect update regarding the changes to lending and exchange functions

Dear community members, the current BCC price drop is the direct result of us releasing all of our members coins at one time. We will do our best to honor the value of BCC as close to what it has been holding during past several months. At this time, we are closing the lending platform only. The BCC Exchange will work as usual from tomorrow and the wallet service will remain operational to hold your BCC on the website.

For next 10 days we are allowing members outside the U.S.A, to participate in the BitConnect X ICO with BCC at $150. This is to support existing coin holders and give the BCC coin some initial stability after these recent events.

We are launching a new, superior system as an exchange that will support several cryptocurrencies as soon as possible and BCC will be listed immediately.

BitConnect Coin are limited in supply to 28 million and there are currently only 9.6 million in circulation.This scarcity of supply should create a market demand, with help and support from the community, once this new exchange begins operation.

We still expect BitConnect coin (BCC) to gain its value back and you can hold your coins in the website wallet or transfer them to a QT wallet.

We apologize for this inconvenience and we are working to get things corrected for this community and platform.

The full announcement, can be found on their site. Unfortunately it does not provide much more explanation, its the same you just read. Seems like in the aftermath of a textbook exit scam, they want to keep the ship floating with their new ‘ICO’ dubbed Bitconnect X. They are pushing their ICO, seeming to say how great it is by buying in at the BCC price at $150 from the obvious bold type.

This whole situation continues to unfold, we can’t help but feel that something smells here. That smelly smell. That kind of smell that smells… smelly.

 

This is developing story, please stay tuned. We are working out what the implications of this are for investors.

 

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