BitConnect Coin price ropped in light of the news

BitConnect Shuts Down Its Lending and Exchange Platform in Light of Legal Troubles

BitConnect, the company behind the BitConnect Coin (BCC), a cryptocurrency used in what is widely believed to be a Ponzi scheme, recently announced it will shut down its lending and exchange platform. Through a blog post on its intermittently available website, the company blames a myriad of external factors.

The team behind BitConnect stated that its lending service has already been shut down, and that its exchange platform will close in 5 days, presumably to allow investors to trade their coins for bitcoin and cash out.

The team added, however, that its website will keep on operating as a wallet service and an educational source. The blog post reads:

“In short, we are closing lending service and exchange service while website will operate for wallet service, news and educational purposes.”

As motives behind the move, the team behind the controversial company claim continuous bad press has made its community uneasy and created a lack of confidence in its platform. Another motive claims outside forces performed distributed denial of service (DDoS) attacks on its platform, further increasing the community’s panic.

Notably, the team mentions the cease and desist letters the company received, as covered by Core Media, from regulators in Texas and North Carolina. These claimed the organization was engaging in the sale of unregistered securities tied to its Bitconnect X token sale.

“Bitconnect X ICO is still functional”

Per the organization’s statement, it will continue to “offer cryptocurrency services” in the future. The Bitconnect X ICO, which was specifically named in the cease and desist letters, will remain “functional.” The company added it is building an exchange, in which the BCC token will be listed.

Bitconnect attempted to give the move a positive spin. It stated that closing its lending platform and exchange will “allow BitConnect to be listed on outside exchanges giving more options for trading.” It added that it will work for its token to be listed on “merchant websites” as well.

On its website, BitConnect claims its token is currently trading at $236.42. This shows the token has suffered from today’s cryptocurrency market crash, but the figure doesn’t seem to be real. According to Cryptocompare, its BCC token is trading at $30.7, down from over $400 earlier this month.