BitConnect Most Likely To Be Shut Down As It Is Charged Guilty Of Ponzi Scheme

BitConnect Charged Guilty Of Ponzi Scheme Most Likely To Be Shut Down By Regulators If It Cannot Prove Otherwise

Vitalik Buterin, the renowned founder of Ethereum had since long back suggested that BitConnect, a popular Bitcoin exchange traded platform have been running on the dodgy Ponzi scheme which has caused the UK Registrar of Companies to threaten shutting down of BitConnect and dissolving its operations. BitConnect has been rendered two months to prove “cause to the contrary” and the official decision shall be enforced formally thereafter. This was revealed by an official filing registered in the website of the British Companies House. In case the company fails to abide by such requirements then the government agency shall seize all its assets and strike off its registration. The document highlighted that,  “upon dissolution all property and rights vested in, or held in trust for, the company are deemed to be bona vacantia, and accordingly will belong to the crown.”

Although there lies no supporting evidence, various market watchers have speculated that BitConnect stashes its funds abroad. Another filing have revealed that BitConnect has been registered under the shady identity of a British man known as Ken Fitzsimmons although there lies no mention about the people who have been behind it shifty operations. The filing has claimed that Fitzsimmons holds about 75 percent or more shares in the company. BitConnect’s website holds no mention of Fitzsimmons’ name and nobody is even aware of his involvement in the cryptocurrency platform.

Cryptocurrency enthusiasts have imparted a suspicious tag to this lack of proper information with one even reporting against BitConnect to the British government. Although the details regarding Fitzsimmons continue to remain highly scarce, the price of BitConnect  (BCC) took a downward plunge from $287 to below $230 before climbing back to $245. But this could not stop BitConnect from conducting promotional activities for luring in increased number of investors under their operational radar. It has even announced a suit-and-gown networking event which is all set to take place on 28^th of October in Thailand. The action packed program will feature, “acrobatic performances, dance and live entertainment,” but offered very less information regarding the company’s plan of getting out of the current fiasco.

Bitpetite, a suspicious Bitcoin investment platform disappeared abruptly two weeks ago fuelling the cryptocommunity with increased lack of trust towards BitConnect. Various people called out to respected crypto influencers urging them to comment on the situation and give a solution of the same. Buterin responded to guest queries suggesting that the fishy Bitcoin trading platform might as well be running on the Ponzi scheme. It was since then that Redditors have noticed a large number of red flags strewn all across BitConnect’s website along with the schematic which uses a pyramid picture for explaining the platform’s revenue structure.

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