Bitconnect Promoters Targeted In Class Action Suits, Twice In One Week

BitConnect International, PLC had a somewhat unique business model, even for an industry known for its unconventional nature. On its face, BitConnect functioned as an exchange. However, the real purpose of the platform, and what led to its ultimate downfall, was its lending program. BitConnect "borrowed" the crypto investments of its customers in exchange for an equal value of its own native coin, BitConnect Coin or BCC, along with promises of astronomical returns on those BCC holdings. These promises were often made by well-known social media personalities that received significant compensation. However, after BitConnect was hit with two cease-and-desist orders from the Texas and North Carolina state securities regulatory bodies in the lead-up to the launch of a new coin, dubbed BitConnectx, the company closed its exchange and the price of BCC dropped by over 90%. This drop caused investors to lose millions of dollars, as they had traded other cryptocurrency and fiat