Popular MLM Platform Bitconnect Shuts Down Operations
The company associated with the popular and controversial altcoin “Bitconnect” has issued a statement saying that it will be shutting down all of its lending and exchanging operations.
Bitconnect offered users a lending and exchange platform, which many believed to be a Ponzi. In recent weeks, cease and desist orders have been issued to Bitconnect and similar platforms, such as USI Tech.
According to the Bitconnect website, there are numerous reasons for ceasing operations, with many not believing it at all. The following is their statement:
“The reason for halt of lending and exchange platform has many reasons as follow:
- The continuous bad presshas made community members uneasy and created a lack of confidence in the platform.
- We have received two Cease and Desistletters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division. These actions have become a hindrance for the legal continuation of the platform.
- Outside forces have performed DDos attackson platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.”
Bitconnect Altcoin Crashes by 80%
Upon news of Bitconnect’s sudden exit happening, the altcoin wiped people’s portfolios. With a 90% price correction, investors were left totally shell-shocked, with the drama unfolding at the same time as the cryptocurrency market itself corrected and Bitcoin plummeted below $10,000.
What Happens Next
Sadly, horror stories are beginning to surface of investors losing huge amounts of money. While Bitconnect has said all users will be refunded, it is unclear if it will be at the original price or at the price it is trading at the time of writing.