The central theses
- The US SEC has charged five people with connections to the BitConnect crypto-Ponzi system.
- BitConnect was mainly active in 2017. More than $ 2 billion was raised during the year it was operational.
- The supervisory authorities initially took measures against BitConnect in 2018.
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The U.S. The Securities and Exchange Commission has indicted five people in connection with the BitConnect Ponzi scheme.
SEC calculates BitConnect promoters
The SEC states that from January 2017 to January 2018, BitConnect sold its cryptocurrency papers through four main sponsors: Trevon Brown (aka Trevon James), Craig Grant, Ryan Maasen, and Michael Noble (aka Michael Crypto).
The SEC says these people promoted BitConnect by posting testimonial videos on YouTube and that they received commissions for successfully attracting investors.
It adds that another person, Joshua Jeppesen, acted as the liaison between BitConnect and its promoters.
The SEC accuses the organizers of violating the registration requirements of the Federal Security Act and accuses Jepsen of supporting and favoring BitConnect’s unregistered securities offering.
The regulator has filed its complaint in the United States District Court for the Southern Borough of New York.
What was BitConnect?
BitConnect raised more than $ 2 billion from investors in 2017 and was briefly included in the list of the top 20 cryptocurrencies.
The system was short lived, however, and investors were quick to suspect BitConnect was a Ponzi program based on the unlikely returns it promised. Regulatory agencies in Texas, North Carolina, and Kentucky issued injunctive and cease and desist orders and injunctions.
Although BitConnect was a short-lived operation, it remains one of the most notorious crypto-Ponzi schemes in crypto history.
Another related scheme, BitConnect 2.0, surfaced in 2019 but ultimately came to nothing and quickly disappeared.
Disclaimer: At the time of writing, this author held less than $ 75 in Bitcoin, Ethereum, and Altcoins.
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