Investors Want Their Money Back from BitConnect Exchange
A week ago, BitConnect announced about the closing of their operations as a cryptocurrency exchange provider. The reasons were the cessation letters received from the Texas and North Carolina authorities. Now, investors are looking for legal ways to get back their money.
They complained to the Southern District Court of Florida on January 24, 2018 that BitConnect traded cryptocurrencies that have not been registered in accordance with the rules of legal security. Additionally, they created a fund, called “wide-ranging Ponzi scheme”.
The exchange has launched numerous projects during its existence, through which it urged its investors to purchase BitConnect Coins with cryptocurrencies. Later, BitConnect assured investors that they would be properly remunerated. They claimed that their funds are used to generate a profit of 40% per month or a 1% daily rate additional to the total invested amount.
In the document presented to the Florida Court is argued that the company violated the Securities Act by offering unregistered securities. The statement from BitConnect which could be found on their website sounds like this: “This investment option involves profiting from BitConnect trading bot and volatility software. You will receive daily profit based on your investment options. Upon investment term completion, you will receive your capital back to take out from the BitConnect lending platform or optionally reinvest back in lending platform to continue receiving daily profits”.
According to the data registered in the official document, it is clearly mentioned that there are six persons who have filed complaints on behalf of all investors. They have supported the company along its activity with both cryptocurrencies and fiat currencies for the investments promised by BitConnect. They argued that the total amount lost as a result of the negligent company is worth $ 771,000.
Do you think that BitConnect will give back to the investors all debts?