US SEC Officially Press Charges Against Cryptocurrency Project BitConnect

After many years of suspending services, the saga between BitConnect and the United States Securities and Exchange Commission took another turn as the SEC filed a fresh charge against the crypto exchange over alleged illegal crypto offering to retail investors worth $2 billion.

Charges Against the BitConnect Founder

BitConnect is a crypto platform founded in 2016 that gained its name from the advanced trading robot it offered, which promised mind-blowing returns for everyone that deposits various digital assets to the platform. Of course, this sounds unrealistic, but it did exist, and the platform eventually launched its own native token (BCC), which finds its way to the top 10 ranked crypto per market cap for a while.

The beginning of the end for the crypto platform began in 2017 when it received a cease-and-desist order from the United States SEC. This led to the eventual shutdown of the platform operations – Exchange and Lending operations in 2018.

This year makes it three years since its existence ceased, but the shadow of the platform still remains. However, the SEC is now after the platform, the founder and a popular promoter in the United States and its firm.

The charges from SEC stated that the parties involved had scammed crypto retail investors about $2 billion by offering unregistered investments related to crypto.

The complaint from the commission stated that the crypto platform promised its partners (retail investors) that their high volatility software trading bot would generate high returns for them up to 1% daily but could not live up to the promise. Not only were they not up to fulfill the promised returns, but they diverted the investors’ funds to their wallets for personal gains.

What is the Next Line of Action?

The Securities and Exchange Commission has filed the charges against the involved defendants for violating the registration and antifraud law provided by the federal securities policies. The charges, however, requested disgorgement together with interest, injunctive relief, and civil penalties.

Statement from the Department of Justice of the United States has revealed that the top promoter in concern, Glenn Arcaro, has pleaded guilty to the charges filed against him. But his punishment was not specified in the statement.

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