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BitConnect promoter Calen Powell detained by the FBI

Anvita M V

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BitConnect promoter Calen Powell detained by the FBI
Source: Unsplash

After the failure of BitConnect came to light in January this year, the U.S law enforcement seems to have a watchful eye on people associated with BitConnect.

In a recent YouTube video released by Calen Powell, also known as Crypto Clover, [who refers to himself as a"crypto nomad”], he claims to have been restrained, threatened and questioned by the FBI. He also stated that the FBI seized all his money and electronics when he tried to enter the U.S.

Earlier this year, a news broke concerning BitConnect, when the cryptocurrency exchange made a sudden exit from the crypto market. BitConnect was Bitcoin’s biggest scam till date in the cryptocurrency world, operating as a Ponzi scheme [f[fraudulent investment scheme falsely claiming high returns with little or no risk to investors]or BTC investors.

Before the revelation of the scam, the firm’s promoters were active in the sale and purchase of cryptocurrency tokens. They also strongly pushed Bitcoin [B[BTC]s a positive investment option.

According to the investigation, BitConnect had registered an official address in the UK and the address was just a cover-up to hide the company’s additional dealings.

An official statement issued by the investigators said:

“The promoters used to mention a special software that used to decide on how low and high points of Bitcoin for purchase and sale respectively. The difference used to be earning and the firm had promised 365% annual return on 1% daily.”

Recently, Powell’s latest home has raised brows of the law enforcers. However, the cryptocurrency nomad claimed that all the allegations were baseless.

In his video, he said:

“This is all in Asia.. you got to go to India… you’re looking at the wrong people, “

Powell indicates that his past might serve as an advantage in the investigation. He said:

“I do have a legal past… so they know about that. The FBI… the ability for them… the information they have access to and the things that they can get from me… They just have a lot of information that they can pull on me. They know about my history, my past already… if they’ve done their due-diligence.”

He added:



“So I’m gonna be talking with the FBI now and dealing with them a little bit. Hopefully they don’t block my passport and not allow me to leave the country. But I tell you what man, when I leave the country I don’t know if I’m coming back for a long, long time.”

Furthermore, he said that he is looking to get a second passport made, just like Glenn Arcaro [D[Director of BitConnect]hen he made his famous exit from the crypto market. Powell went on to say, Glenn did that only to travel with ease in case his U.S. passport had some sort of restriction and Powell would like to do the same in the future.

Powell also explains that he has not been contacted by the SEC and he will be seeking legal advice. Meanwhile, he has assured that he will cooperate with the FBI.





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Anvita Mysore Vadiraj is a full-time content writer at AMBCrypto. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies.

Altcoins

FLiK case: Utility tokens take another hit in case allegedly involving Rapper TI, claims prominent lawyer

Priya

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Source: Unsplash

Stephen Palley, a prominent lawyer at Anderson Kill, spoke out about the FLiK token case via his official Twitter handle. Notably, unlike most tokens in the space, FLiK made headlines because of its celebrity backing.

Towards the end of last year, it was reported that the US Rapper Clifford Joseph Harris Jr., who goes by the stage name T.I. and T.I.P., was sued for $5 million over the alleged failure of the token promoted by him and his partner, Ray Felton. The rapper was being sued by a group of 25 individuals who claimed that that they invested around $1.3 million in the tokens.

Additionally, there were allegations that the rapper used the raised money to increase the token’s value, following which the duo sold their holdings after the coin crashed. Other well-renowned celebrities such as Kevin Hart and Mark Cuban were also reportedly associated with this project.

On the recent developments surrounding the case, Stephen Palley stated,



“Utility tokens” take another hit in case allegedly involving rapper TI. Court says FLiK ICO tokens = securities under Howey Test, for motion to dismiss purposes. That they offered some functionality ≠ relevant given buyers’ expect of profits solely from efforts of others. 1/4″

Source: Twitter

Source: Twitter

Source: Twitter
The lawyer further stated that,”use of funds” was already determined by the defendants, “per the FLiK token whitepaper.” He went on to state that there was a time problem, adding that Federal Law rules that “unregistered sale” of security tokens were supposed to be reported within 12 months after the violation.

The lawyer concluded by tweeting,

“ps — form was never going to be exalted over substance, so none of this is a huge surprise. Also, this is a ruling on Rule 12(b)(6) motion to dismiss so the Court takes the allegations as true for purposes of ruling. The merits still have to be litigated.”





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