FBI Wants BitConnect Victims To Help Investigation

| Publish date: 02/23/2019
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The FBI is reportedly facing difficulties in its investigation involving the former cryptocurrency exchange called BitConnect. Apparently, the domestic intelligence and security service of the U.S. is looking for victims to help them in the investigation, especially those who have been directly involved with the now-defunct digital currency company.

Calling BitConnect Victims

According to the notice from the federal law enforcement agency’s official website, it is calling every individual who had past experience with BitConnect. Basically, it is referring to people who previously invested in the firm’s coin called BCC token. The agency stated that they can voluntarily reach out to authorities by way of filling out a simple questionnaire.

The FBI stated that investors’ responses would be of significant help, as they can be extremely “useful” in its investigation of the infamous case. At the same time, these responses would help the agency expedite the overall process. The authorities said that individuals who want to help in the case could reach out to respondents directly in order to get more information.

As previously reported, BitConnect decided to shut down its very own cryptocurrency-lending platform back in January last year. The decision was made after the issuance of cease and desist orders from the securities regulators located in North Carolina and Texas. These regulators, on the other hand, claimed that the firm was engaged in vast securities sale – all of which were reportedly unregistered – via its very own initial coin offering (ICO).

As a result, the company’s BCC token plummeted more than 90 percent, which made it fell from more than $400 to less than $20 – a phenomenon that took place in the very first weeks of 2018.  According to CoinMarketCap, a cryptocurrency market data website, the token is no longer part of its list.

Multiple Lawsuits and Demise

The sudden loss in value resulted in multiple lawsuits, all of which are looking restitution for investors who witnessed their holdings changed to nearly worthless. These individuals immediately cited fraud and even securities sale laws.

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The FBI, via a press release, said that BitConnect made sure investors could get up to a 10 percent total return every month on their respective investment. The process, in particular, was designed based on a tiered-investment system, which correspond on the sum of an investor’s initial investment or deposit.

Back in March last year, the former BitConnect investor and promoter named Trevon James said that the federal law enforcement agency was already investigating the case. He also revealed that the already spoke about the company, including his direct involvement with the so-called project.

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