The FBI Is Seeking Bitconnect Victims to Aid in its Investigations of the Ponzi Scheme
The Bitconnect ponzi scheme managed to rope in a lot of investors in the two year period it was operational. From February 2016 till January 2018, BCC was the coin that guaranteed profits for many investors. Some estimates put customer losses to around $1 Billion due to its eventual collapse. Bitconnect’s business plan allowed its investors to lend Bitcoin for interest.
FBI Seeking the Input of Victims to Aid in its Investigations on Bitconnect
A majority of its victims hailed from the United States. Now the Federal Bureau of Investigation (FBI) through its Cleveland, Ohio branch, is seeking individuals who invested in Bitconnect and were affected by its eventual collapse. The notice is on the official FBI website and invites all who were affected to fill out the questionnaire regardless of geographical location.
The FBI is seeking potential victims who invested in the cryptocurrency Bitconnect coin (BCC), which was first released through an initial coin offering orchestrated by Bitconnect in November 2016.
The notice goes on to explain that for a majority of BCC’s existence, all its trading was through the proprietary exchange hosted by Bitconnect. BCC’s market cap by mid-December 2017 was over $2.5 billion. The ponzi scheme promised investors up to a 1 percent daily return on their investment and based on the amount of capital they put in. The more you put in, the higher your returns would be.
How to Aid the FBI
Any victim of Bitconnect can fill out a brief questionnaire by the FBI that is available here. All responses are voluntary and will be used in the federal assessment of the case. Participants might be contacted by the FBI to provide further information based on their responses on the form.
Vitalik Buterin Had Warned Against Bitconnect in Early November 2017
The co-founder of Ethereum, Vitalik Buterin, took to twitter to warn investors that the 1% per day plan was a clear indicator that Bitconnect was a ponzi. His tweet can be found below.
Yeah, if 1%/day is what they offer then that's a ponzi.
One of the most popular videos of the Bitconnect team is still on Youtube and has been the subject of many memes. The video can be found below.
How it All Came Falling Down
Bitconnect’s operations came to a halt in late January 2018 when securities regulators from Texas and North Carolina warned the public that its business model was a classic ponzi scheme. By January 17th, Bitconnect was shut down. The price of BCC crashed by 92% immediately after and its cryptocurrency was delisted from all exchanges by September 2018.
What are your thoughts on the FBI seeking for input from the victims of Bitconnect? Will it further help in the recovery of funds or getting the perpetrators arrested? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.