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FBI Seeking Potential Victims of BitConnect to Assist Investigation

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If you invested within the proprietary token presented by way of the now-defunct crypto change BitConnect, the FBI desires to listen to from you.

In a realize on its site Wednesday, the federal legislation enforcement company said those that invested within the BitConnect coin (BCC) token can voluntarily achieve out to the company by way of filling out a questionnaire.

The FBI stated traders’ responses could be “useful” because it investigates the case, and that it is going to achieve out to respondents for more information.

BitConnect closed down its crypto-lending platform in January 2018 following the issuance of cease-and-desist orders from Texas and North Carolina securities regulators, which claimed the corporate was once enticing in an unregistered securities sale thru its preliminary coin providing (ICO).

As a end result, BitConnect’s BCC token plunged greater than 90 p.c, falling from over $400 to not up to $20 within the first weeks of 2018. Crypto marketplace knowledge web page CoinMarketCap now now not lists the token.

The surprising loss in worth resulted in several lawsuits in quest of restitution for traders who noticed their holdings develop into virtually nugatory, mentioning fraud and securities sale rules.

The FBI stated in Wednesday’s remark:

“Bitconnect guaranteed investors up to a 10 percent total return per month on their investment, following a tiered-investment system based on the sum of an investor’s initial deposit.”

Back in March 2018, Trevon James, former BitConnect investor and promoter, said that the FBI was once investigating the case and that he had spoken to the company concerning the change and his involvement with the mission.

“I’m glad that I don’t know anything, so that means there’s no proof that I knew anything,” James commented on the time.

In August 2018, the Criminal Investigation Department of the Indian state of Gujarat police arrested former BitConnect India head Divyesh Darji after receiving an alert from the rustic’s immigration company.

The BitConnect case is now operating as a unmarried criminal effort within the U.S. In October 2018, an Amended Consolidated Class Action Complaint was once initiated within the U.S. District Court for the Southern District of Florida that still named further BitConnect house owners and promoters who had been in the past now not a part of any complaints.

FBI agent symbol by the use of Shutterstock 

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