Founded in 2016 BitConnecthad quickly entered the crypto space and quickly built a reputation as a platform that promised investors attractive return opportunities.

Indian entrepreneur Satish Kumbhani Founded by , this platform claimed that its investors could earn up to 1% daily returns, and this passive income opportunity managed to grab investors’ attention.

Investors, attracted by the opportunity to make money easily and quickly, invested in BitConnect’s cryptocurrency with great hopes.

BitConnect allows investors to deposit Bitcoins specifically under the name of a type of lending program. BitConnect Coin (BCC) He made sure they got it.

This way with automatic trading bots that they can make high profits It claimed that it offered a passive income opportunity that was a dream come true for investors.

As expected, this passive income idea caught the attention of thousands of people and the platform quickly became popular. Attract billions of dollars in investment He succeeded.

But behind the scenes, things were very different than they seemed.

BitConnect is a classic Ponzi scheme It functioned like.

That is, money from new investors was used to pay old investors, and although the system seemed to survive in this way, The bottom was empty.

All trading bots and software promised by the company There wasn’t even evidence.

Due to the lack of investor interest in this situation, the value of BitConnect Coin reached its peak in 2017. It went up to $463but the platform soon collapsed when regulators realized something was wrong.

In January 2018, under pressure from several regulators, BitConnect abruptly ceased operations, and the recently peaked coin’s value has nearly plummeted. dropped to zero…

When the scandal broke, investors suffered great devastation and lost billions of dollars.

Satish Kumbhani, founder of BitConnect, in 2022 $2.4 billion He was accused of fraud.

Kumbhani and associates, ymisleading investors, manipulating the market and hiding their income They were sued and numerous lawsuits by small investors followed.

To compensate the investors’ losses, the US courts awarded the victims Compensation of $17 million It was decided to pay, but this amount was very small compared to the total loss of 2.4 billion dollars…

As a result, the BitConnect scandal has hit the cryptocurrency world. a big blow affected, demonstrating the need for more regulation in the sector.

Moreover, this phenomenon ensures that investing in projects that promise high returns yields virtually nothing how dangerous it can be He showed it too.

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