Crypto News

What is BitConnect? BitConnect was a cryptocurrency lending and exchange platform that promised high returns to investors. It operated as a multi-level marketing scheme, with users encouraged to recruit new investors in order to earn bonuses. However, the platform was widely considered to be a Ponzi scheme, using new investments to pay off existing investors instead of generating legitimate profits. The Collapse of BitConnect In January 2018, the value of BitConnect's native token, BCC, dropped from over $400 to less than $10 in a matter of hours. This sudden crash was attributed to the closure of the BitConnect lending platform, as well as cease-and-desist letters from regulators in multiple countries. The collapse of BitConnect resulted in significant financial losses for investors, many of whom had been lured in by promises of high returns and a "guaranteed daily profit" of up to 40%. Investigations and Seizures Following the collapse o...