Following months of red flags, Bitcoin investment platform BitConnect – which has long been suspected of running a Ponzi scheme – has officially announced its platform is shutting down.

In a blog post – titled “Changes coming for the Bitconnect [sic] system – Halt of lending and exchange platform” – released on its official website, the company said that is “closing the Bitconnect [sic] lending and exchange platform.” The website has since gone down.

The statement goes on to suggest that BitConnect will now operate solely “for wallet service, news and educational purposes.”

“We are closing the lending operation immediately with the release of all outstanding loans,” the statement read. “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 [sic].”

This rate has been calculated based on last 15 days averages of the closing price registered on coinmarketcap.com,” it continued. “You are free to withdraw your BitConnect coin currently in QT wallets that was used for staking as well. We are also closing BCC exchange platform in 5 days.”

“In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes,” it ended.

Those interested to see the full statement can refer to a screenshot captured by independent Twitter sleuth @BCCPonzi, who has been documenting the investment platform’s shady business for months.

Here is also a screenshot of the BitConnect shut-down announcement obtained by TNW:

According to the statement, the company will “continue offering other cryptocurrency services in the future.” The equally questionnable BitConnect X ICO – which was explicitly named in a cease and desist letter served by the Texas Securities Board – will remain “functional.”

BitConnect claims that its BCC coin will still be “listed on outside exchanges” and “merchant websites.” Meanwhile, it has taken a massive dip to $144, as per CoinMarketCap.

Prior to this development, 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.

This is developing story, please stay tuned. We are working out what the implications of this are for investors.



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