Bitconnect was an open-source cryptocurrency high-yield investment program. It was a Ponzi scheme and the value of the coin dropped from $500 to under $1. The platform owners refunded all users’ investments. The goal of Bitconnect was that users could lend the value of Bitconnect Coin to receive daily interest. The height of the interest was determined by a trading bot.
Why was Bitconnect considered to be a Ponzi scheme?
Bitconnect’s multilevel marketing structure and high payouts were reasons to suspect Bitconnect was a Ponzi scheme. The U.S. Securities and Exchange Commission sued Bitconnect in September 2021. The SEC alleged that Bitconnect had defrauded investors for over $2 billion.
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