BitConnect Collapses, Defrauding Investors of Estimated $2 Billion

Summary # BitConnect, a cryptocurrency and lending platform, operated a fraudulent high-yield investment program (HYIP) from 2016 to 2018. The platform promised unsustainable daily returns of 1% with compounding, attracting a large investor base through aggressive multi-level marketing (MLM) tactics. In January 2018, BitConnect abruptly shut down the HYIP, triggering a panic and leading to a 90%+ drop in the value of BitConnect Coin (BCC). The U.S. Securities and Exchange Commission (SEC) later concluded BitConnect operated as a Ponzi scheme, defrauding investors of an estimated $2 billion. ...