When someone is asked to think of a cryptocurrency scam, BitConnect (BCC) is surely one of the coins that comes to mind first – especially after in the last few weeks. After mounting pressure and a barrage of accusations that it was a Ponzi scheme, the platform decided to shut down its lending program. Since then, its price has dwindled down to a tiny fraction of what it was in the first week of January.
It has also been hit with lawsuits, and things are starting to look pretty bad.
How is BitConnect (BCC) trading 54% higher right now?
In the past 24 hours, BCC has added 54% to its price – and it is now trading at $10.40. Why this coin is surging at the moment is anyone’s guess, especially considering what has been announced within the last day:
U.S. Court Freezes BitConnect’s Assets As Lawsuits Pile Up https://t.co/8RzAGqj1ZW
— Bitcoin Insider (@BitcoinInsidr) February 1, 2018
Yes, after already getting hit with one lawsuit in the state of Florida last week, this now-offline cryptocurrency exchange and lending program has been hit with a new lawsuit – this time in Kentucky. The new litigation is on behalf of plaintiff Brian Page, a resident of Kentucky, and it names both BitConnect and its representative (Ryan Maasen) as defendants.
Two lawsuit, same complaint
The new lawsuit, just like the one before it, accuses this platform of being a scam, essentially. Under the program, users had to buy BCC coins using Bitcoin (BTC) in order to reap the rewards for “lending.” The platform promised 40% return on investment (ROI) per month.
This time around, however, the judge temporarily froze all of the assets belonging to both the platform and the founder. At a US District Court in Western Kentucky, Chief District Judge Joseph McKinley, Jr. ordered the submission of all wallet and trading addresses associated with BitConnect – as well as the identities of whoever they have transferred funds to in the past three months.
Is that a sign that there is suspicion BitConnect (BCC) has been moving funds around illegally?
Is this why the market is driving this crypto coin’s price up today?
Sure, today’s growth is a mere speck of dust compared to the $300 price tag this coin held less than a month ago – but it is a significant daily gain nonetheless. It is curious to see that investors are buying in now.
It gives a whole new feeling to the phrase “buy on the dip.”
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.