The U.S. state authorities have implored the Criminal Investigation Department in India to confiscate the properties of promoters of BitConnect. The authorities from the Illinois and Arizona plead to seize the property of promoters who allegedly raised nearly $5.6 billion from investors. The CID stressed that the investments in virtual currencies after ‘demonetization are suspected of laundering black money.’
YouTube added as a defendant in a lawsuit filed against BitConnect. The lawsuit filed by six representatives from the Silver Miller law firm claimed that the BitConnect distributed unregistered securities and gained funds leading to a Ponzi scheme. The BitConnect affiliates have posted several videos and allegedly promoted investments. The document claimed, “YouTube failed as a gatekeeper to protect its users.”
Trevon James, the former Bitconnect investor, claims to have communicated to the FBI about his role with the defunct crypto scheme project. He emphasized that he knows less about the exchange and he did have any plan. He shared his experience as a user in a 90-minute conversation.
The U.S. District Court imposed a ‘temporary restraining order (TRO)’ on BitConnect halting its assets. BitConnect is ordered to reveal crypto wallet and trading account addresses and details of those who acquired virtual currencies in the last 90 days.
Six investors, acting on behalf of all investors and account holders at the BitConnect exchange platform, filed a suit with the Southern District Court of Florida. They claimed that they had almost lost $771,000. They alleged that BitConnect issued unregistered securities and they had also received additional investment funds under the Ponzi scheme.
The BitConnect announced about the closure of its cryptocurrency exchange and lending platform. The company had made the decision since it has received two ‘cease and desist’ order from Texas State Securities Board and North Carolina Securities Division. The note issued by the team stated, “BitConnect.co website will operate for wallet service, news and educational purposes.”
Bitconnect, a bitcoin investment lending community is experiencing legal distress. It received yet another ‘cease and desist order’ from the North Carolina Securities Division. The order commanded the company to temporarily suspend its operations. As none of Bitconnect entities are registered, the notice pronounced that it is illegal to operate unless listed as legitimate ‘security dealer’.
The Texas State Securities Board issued a ‘cease and desist’ letter to BitConnect, a cryptocurrency lending and investment forum based in London. It commanded to close down the operations and it’s BitConnect Coin (BCC) within 30 days of receiving the notice.