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BitConnect back under the FBI’s radar after Bureau solicits new information from Ponzi scheme victims

Priya

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BitConnect back under the FBI's radar after Bureau solicits new information from Ponzi scheme victims
Source: Unsplash


BitConnect, the biggest Ponzi scheme in the history of cryptocurrency, is back in the limelight after a long time. This time, the platform is in the news after word broke out that the investigative agency is gathering intelligence and information pertaining to BitConnect.

BitConnect was one of the most popular platforms in the cryptocurrency space, with its token, BCC, listed among the top 20 cryptocurrencies of the world. The platform was launched in November 2016 and gained popularity towards the end of 2017.

The reason behind the platform’s rise was its multi-level referral feature that guaranteed a return of 1% per day. This was soon identified as a Pyramid Ponzi scheme, with even Vitalik Buterin, the creator of Ethereum, coming out to criticize the platform.

Soon after its rise, the platform fell under the radar of regulatory bodies. This included UK’s regulatory body that issued a notice to the exchange, asking the platform to prove its authenticity within two months. This was followed by a Cease and Desist order from the Texas State Securities Board.

Finally, the downfall of BitConnect’s token was marked by the spectacular fall of the token’s price from around $463 to $5 in a matter of days. Soon after this, the exchange platform was shut down, deserting several investors.

Now, the FBI seems to have taken an interest in the famous cryptocurrency Ponzi scheme as they announced they were “Seeking Victims in BitConnect Investigation.” The FBI is collecting voluntary responses from the victims of the Ponzi scheme as they claim that it would be “useful in the Federal assessment of this matter.”

The primary information collected by the Bureau is the name, contact number and email address of the victims, along with questions pertaining to the matter. Victims were required to reveal whether they were directly contacted by the FBI in the past, how they were introduced to BitConnect, their investment in the Ponzi scheme, username and email address associated with BitConnect and whether they were referred to BitConnect by anyone.

However, this is not the first time the FBI and BitConnect have crossed paths. Previously, Calen Powell, the Promoter of BitConnect, announced in a YouTube video that he was detained by the FBI. He claimed to be restrained and questioned by the FBI, along with having his electronic devices and money confiscated when he tried to enter the United States.





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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