BitConnect Shuts Down Its Lending and Exchange Platform

News and Analysis

Bitconnect, the lending and exchange platform that was long suspected by many in the crypto community of being a Ponzi scheme, has announced it’s shutting down.

In a release on its website the platform said the shutdown is attributed to “continuous bad press” surrounding the platform, two cease and desist letters from both Texas and North Carolina’s securities boards, and continuous DDoS attacks on the platform.

“We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division,” BitConnect wrote, adding:

“These actions have become a hindrance for the legal continuation of the platform.”

The post also blamed ‘outside forces’ instigating DDoS attacks on the platform, making it ‘unstable’ and creating ‘panic inside the community.’

The platform was powered by a token called BCC which is essentially useless now that the trading platform has shut down. The token has plummeted more than 90% to about $15 at press time.

Pressure has been mounting on Bitconnect for months, with leading figures within the crypto community, from Vitalik Buterin to Jameson Lopp, speculating that the exchange was not all it was cracked up to be.

Nevertheless, BitConnect insists that it will continue supporting its digital token despite closing its own exchange and lending platform. The company also says ‘BitConnect X ICO’ remains functional, pointing to an upcoming exchange platform on its ‘BitConnect X’ website that will list its token cryptocurrency BitConnect Coin (BCC).

“This is not the end of this community, but we are closing some of the services on the website platform and we will continue offering other cryptocurrency services in the future,” the notice added defiantly.

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