BitConnect was a crypto lending platform that got shut down last year in January after the company received multiple cease-and-desist orders from state securities regulators who claimed that the platform was a Ponzi scheme and in today’s blockchain news we find out more about FBI trying to build a stronger case about it.
The FBI is asking BitConnect investors to fill up a questionnaire that is voluntary on their website. The agency says that the responses to the questionnaire will be extremely useful to build a case and could even lead to further questioning from the agency, according to the statement on their website.
Both of the orders had crushed the coin and its value since only in January the coin lost about 90 percent of its value crashing to $20 from $400. Because of the massive drop in value, the investors filed a class action suit against BitConnect with hopes to get their money back. The lawsuit was filed with the Southern District Court of Florida alleging that BitConnect issued unregistered securities and thus created a ‘’wide-ranging Ponzi scheme.’’
The plaintiffs claimed that the platform launched a lending platform which made investors place their assets in exchange for the BCC token after the company promised a 40 percent return on their investment. They also argued that the funds were not later used for trading but older investors were paid with the money of the new investors.
BitConnect’s shareholder John Bigatton had his account frozen and received a travel ban by the Federal Court of Australia.
The case is not only running in the United States and a consolidated lawsuit asked for a jury trial and remittance of all investments made by the plaintiffs.
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