Ponzi game BitConnect closed, users suffered great losses

BitConnect, the lending and exchange platform, which many people in the cryptocurrency market have been warning about for a long time that it is a ponzi, has been shut down.

According to the announcement on the official website, the reasons behind the closure of the site were “in the press about the platform. The bad news that took place was reported as “continuing DDoS attacks with two separate warnings issued by both Texas and North Carolina security boards”. BitConnect token BCC, which traded over $320 the day before the announcement, fell below $17 with the announcement, perhaps experiencing an unprecedented decline throughout the history of cryptocurrencies. Many users who joined BitConnect suffered great losses.

Many people in the cryptocurrency community, including Ethereum founder Vitalik Buterin, accused BitConnect of running a ponzi scheme.

How did the system work?

For those unfamiliar with the system, BitConnect worked like this: Users were sending Bitcoins to the system and these Bitcoins were converted to BCC. In order to earn interest from the system, BCCs had to be kept in the system for a certain period of time. For example, you wanted to deposit $10,000 into the system. In this case, according to the plan, the principal had to stay inside for 180 days. The interest income you would get would be approximately 40% monthly, with a daily 20% bonus.