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BitConnect shuts down amid allegations of being a Ponzi scheme

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Amid allegations of being a Ponzi scheme and having suffered multiple DDoS attacks, lending and exchange platform Bitconnect has announced that it is shutting down.

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In a release on its website the platform said the shutdown is attributed to “continuous bad press” surrounding the platform, two cease and desist letters from both Texas and North Carolina’s securities boards, and continuous DDoS attacks on the platform. The statement goes on to suggest that BitConnect will now operate solely “for wallet service, news and educational purposes.”

Bitconnect has stated that it will refund all active loans at a rate which it calculated from the past 15 day average price. "With release of your entire active loan in the lending wallet we are transferring all your lending wallet balance to your BitConnect wallet balance at 363.62 USD. This rate has been calculated based on last 15 days averages of the closing price registered on coinmarketcap.com."

Within moments of the notice, the BCC token price plummeted from around $180 to $24 amid a general market decline across all cryptocurrencies. The total market capitalization of all cryptocurrencies is hovering around $450 billion, down ~30 percent from $650 billion just 48 hours ago. Even Bitcoin is trading below $10,000 on most major exchanges right now.

Prior to the shut down, the shady Bitcoin investment scheme was mired in a litany of legal troubles, including cease and desist orders from the UK in November, as well as two more from from the US this month – one from the Texas Securities Board and one from the North Carolina Securities Division.

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