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BitConnect was a cryptocurrency (BitConnect Coin or BCC), website, exchange and lending service. BitConnect maintained a system of tiered accounts into which one locked bitcoin deposits for between 120 and 299 days. With the deposited bitcoin, one could buy BCC and lend it out again, earning daily interest. The more bitcoin one deposited the better the tier one was placed in, where better meant shorter lock-up and higher rates of interest.

BitConnect's website indicates that it was targeted to an Asian clientele with sub-sites for Vietnam, South Korea, India, Indonesia, Japan, Thailand, Cambodia, and the Philippines.[1]

In response to prodding for a comment by the industry observer "Madoff wasn't on the blockchain" on Twitter, Ethereum founder Vitalik Buterin identified BitConnect as a likely Ponzi scheme.[2]

In October 2017 BitConnect's Carlos Matos, a BCC investor, made a speech that went viral on YouTube shortly after he gave the testimonial for the coin and the company at the BitConnect First Annual Ceremony in Thailand. The video can be found here.

Bitconnect Carlos.jpg

In July 2018, YouTube, which allegedly carried 70,000 hours of unedited content by and about BitConnect, was named in a class action lawsuit for negligence for not policing its content.[3]

On January 17, 2018 denying that it was closing down permanently, BitConnect announced on its website that it was immediately halting its lending operations and would shortly suspend trading of BCC on its exchange. It blamed two cease-and-desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division, along with bad press as the cause of its problems.[4]

As of October 4, 2018 the BitConnect website was live, although access to trading was not clearly available. The site provided information about cryptocurrencies in general, bitcoin and BCC specifically, current industry news and price information about BCC.[5]

On February 20, 2019, the Federal Bureau of Investigation (FBI) posted a notice on its website inviting former investors of Bitconnect to reach out to the agency to help its ongoing investigation.[6] [7] The questionnaire requires a first and last name, an email address, and a contact phone number.[8]