The Bitconnect Bloodbath. The losses are mounting in terms of dollars and lives.
$316,832,344.90. That’s the tally among the nearly 900 people who registered their losses on Bitcoin-Guerillas.com as of today. The Bitconnect bloodbath doesn’t stop there; the human toll could be even higher. While unconfirmed, it seems the first Bitconnect suicide recently occurred with a young Chinese man jumping off of a bridge. The video can be seen right here (WARNING: EXTREMELY GRAPHIC):
What can be confirmed are the suicidal thoughts of many people across Facebook and Reddit groups leading to the widespread posting of suicide hotline phone numbers. Many people, while not suicidal, are understandably depressed in the aftermath of The Bitconnect Bloodbath like this poor chap facing ruined wedding plans…
While many people are sympathetic to Bitconnect victims, there are just as many who show no compassion for the people who had their lives turned upside down by The Bitconnect Bloodbath. When I first learned about Bitconnect my impression of the whole thing wasn’t good so I avoided it. Other people who lacked the insight or the intelligence dove in to claim their fortune having no idea what they were in for. Yet others believed Bitconnect to be a ponzi scheme at the outset but didn’t care; they wanted to claim their own fortune.
Were the victims greedy? Most of them probably were to one degree or another. Were they gullible? Yes in many cases. But did they deserve to be driven to the brink of madness? Or bankruptcy? Certainly not. The Bitconnect bloodbath is the result of just another confidence scheme. Lures of riches and get-rich-quick has haunted human history since the dawn of time.
Now is not the time for ridicule or condemnation of victims of the Bitconnect bloodbath. Now is the time for community unity in the cryptocoin community in educating, inspiring and guiding. Let’s share our collective wisdom and experience so all of our boats rise.
Bitconnect Behind the Curtain – What Bitconnect Did That Left Cryptocoin Investors Shocked, Sad, Angry and Out for Blood.
Before we take a look at Bitconnect behind the curtain we need to look at the public positioning of Bitconnect.
Introduction – What Is (Was?) Bitconnect?
In essence, the BitConnect service claimed to convert Bitcoin (BTC) into BCC (their proprietary coin) and pay holders of BCC interest earned from their trading bot. It should be said that the actual existence of such a bot is dubious at best. It has been said that Bitconnect itself controlled the supply and the price of BCC. If Bitconnect wanted the price up or down on any given day they put the word out to their promoters and other insiders who would either pump or dump BCC as needed which would dictate the returns to be paid the next day.
The interest rates grabbed everyone’s attention and with good reason; claims run the range from 1% to as much as 4% PER DAY depending upon how much the investor loaned. The premise behind the persuasion runs along the lines of “we’re better cryptocoin investors than you so trust us with your Bitcoin and you’ll make money.”
This leads to the first litmus test: If something sounds too good to be true it probably is. Critical thinking skills should have been applied by every prospective investor prior to putting their trust in Bitconnect.
Steve Dell, writing for Medium framed this perfectly in his piece “Bitconnect Explained”:
“An speculative investor should ask is: Why? If you have this incredible ability to trade an asset in such a way that you have virtually no risk and tremendous upside, why would you allow little old me to reap the benefits of that? If you’re able to get 1% per day on $100,000, in one year you’d be looking at close to $4,000,000. Their method of trading would truly be revolutionary…
…If you could generate that kind of income passively, would you ever consider trading?”
Steve Dell’s reasoning resonates with my own when it comes to Bitcoin cloud mining; if you can make so much money on your own why invite anyone else to share in your riches?
Bitconnect Promoters – Who Are They, What Did They Do and How Much Did They Get Paid?
Some colorful names of Bitconnect promoters on this list:
Cryptogirl, Crypto Clover, Jeti Knight, crypto Nick, Trevon James, Glenn Arcaro, Craig Grant, Ryan Hildreth and Joey Rocket among others. Sunny Decree was a promoter then decided it was a scam months ago and stopped promoting. Side notes on Joey Rocket – There is a Joeyrocket LLC out of Tempe Arizona. Joey Rocket went the extra mile with his Bitconnect pitch videos having them translated to reach prospective Bitconnect investors and/or promoters in Malaysia and Germany.
All of these promoters are fascinating subjects. Perhaps Crypto Nick a little bit more interesting than the others in the sense that he’s a millionaire and has yet to celebrate his 18th birthday. This YouTube interview is eye-opening…
Bitconnect promoters were essentially on the payroll getting what is believed by some to be a fixed amount of BCC PLUS a generous weekly marketing budget of .5 Bitcoin (that’s $7,500 give-or-take) for weekly advertising which was largely, if not entirely, spent on YouTube advertising promoting their videos. Interestingly, nearly all of the videos created and published by Bitconnect promoters have been deleted right around the time Bitconnect shut down their lending operation. It seems they had an exclusive view of Bitconnect behind the curtain before anybody else.
Other sources believe they were paid a percentage of every dollar they brought in. I think the percentage-based model is the one they were paid by as it makes the most sense and perfectly explains all of the enthusiasm the promoters exhibited in talking up Bitconnect.
What is certain is that top promoters of Bitconnect behind the curtain enjoyed yacht parties, posh luxury cars made by Porsche, Aston Martin and yes Lamborghini as well as all-expenses-paid junkets to Thailand.
How did it work? The promoters have (had?) their affiliate links which tracked all of their activity which was the basis of them getting paid through bringing in new Bitconnect investors. In turn, the promoters recruited people to work under them. This points to a classic MLM (multilevel marketing) scheme. The promoter on top of the pyramid collected a percentage of all of the money the promoters under them brought in plus the cars, trips and parties and who even knows what else?
The Bitconnect Impact – How Much Did They Take? How Much Did They Make?
Since it seems Bitconnect controlled the price and the supply of BCC there’s no way to be sure of how much money was made by them and lost by investors. Estimates range from $600 million to over $2 billion as illustrated in these charts:
How many dollars are we talking about here? We may never know for sure. Certainly millions and quite possibly billions. If we’re fortunate we’re getting a closer look at Bitconnect behind the curtain one day.
The Bitconnect Shutdown – Shattered lives, broke and broken families coupled with suicidal thoughts
I documented the Bitconnect shutdown a few days ago. The official word is that Bitconnect will redeem each BCC coin held for $363 per coin. The thing is, the cryptocoin markets tanked the BCC price to the degree it plummeted in value by 90% the same day the Bitconnect shutdown news broke. Indeed, some suspect the plunge of most coins on the cryptocoin markets (Bitcoin, Ethereum, etc.) were impacted by the Bitconnect disconnect.
What I can only add is that the tales of tragedy and loss are profound and almost indescribable. A lot of people have lost money. Some are now completely destitute, others simply depressed over losing money while a few are still in denial and are hoping for a BCC price rebound. That seems increasingly unlikely as BCC was about $30 three days ago and is $18 today. Husbands are fearful of telling their wives, businessmen are facing bankruptcy and some have even admitted to contemplating suicide.
After taking a good long look at Bitconnect behind the curtain nobody should be holding out hope of getting anything near their money back except through a successful outcome of a Bitconnect class action lawsuit.
Who Owns and Runs Bitconnect?
Here’s where we try to see Bitconnect behind the curtain. In something akin to the movie “Catch Me If You Can” in the sense it’s difficult bordering on the possible to identify with certainty who is the owner/are the owners of Bitconnect. The best research we’ve seen so far was done by “The Bitcoin Informant”. His YouTube video does an excellent job of unearthing critical documents and connecting important dots. I would take the references to the Illuminati with a grain of salt but otherwise respect the excellent research he has performed….
Here’s another excellent video with impressive global research from England to Indonesia with additional reach into OneCoin while drawing parallels…
The Bitconnect saga is still unfolding. The entire Crypto Capers team is on this along with a panel of former Bitconnect customers and cryptocoin experts compiling and supplying us with all of their research. We’ll update you as news comes in.
Bitconnect Class Action Lawsuit – Thousands feel cheated and the lawyers have mobilized
As the saying goes “Well that was fast.” It all started two days ago when Bitconnect shut down its Bitcoin lending platform. That was when Bitconnect class action lawsuit talk started.
As chaos erupted across the cryptocoin world a new Facebook group was created that same day; The Bitconnect Class Action Lawsuit Group
Jon Alexander took the bull by the horns and is leading the charge to mobilize as many people as possible to join him in a Bitconnect class action lawsuit.
His efforts are bearing fruit. In less than 48 hours over 1,000 people have joined the group with experiences and impressions that run the gamut:
Most people are understandably furious; they feel they were misled, manipulated and cheated. The term “Ponzi scheme” is used constantly.
Surprisingly, a few people stated they knew it was a Ponzi scheme but still wanted to make money with Bitconnect.
The tales of losses are profound. Several posts advertising the USA’s suicide hotline were posted. The saddest tale of Bitconnect loss seems to be this one…
Then there’s the other side of the coin — people who are holding out hope that Bitconnect will come back…
They are HODLING their BCC in hopes they will get the $363 USD per coin promised as the price currently floats at around $30.
Astonishingly, some people are doubling down on Bitconnect and buying even more BCC at low prices hoping they’ll make a tidy profit.
One fellow wants to see North Carolina and Texas sued, questioning the legality of the cease and desist letters they issued to Bitconnect.
The prevailing sentiment is that Bitconnect robbed people blind and while there is a glimmer of hope of recovering lost money, real hope grows as the Bitcoin class action lawsuit gains momentum. Much more than just a pipe dream or fanciful daydreaming, a Bitconnect class action lawsuit seems very real. Just yesterday the law firm Silver Miller has announced their intention to organize and file a class action lawsuit on behalf of NOT ONLY Bitcoin investors who lost money but indeed ANY CRYPTOCOIN INVESTOR WHO FEELS THEIR INVESTMENTS LOST VALUE AS A RESULT OF THE BITCONNECT SHUTDOWN.
Holy shit, boys and girls.
The Bitconnect class action lawsuit story has just started. We’ll keep you updated on this as the story unfolds.
Bitconnect Says Goodbye to Bitcoin Lending – Under a dark cloud of scrutiny
Abruptly pulling the plug on their platform today, Bitconnect says goodbye to Bitcoin lending. What makes this sudden exit all the more suspicious is the timing; Bitconnect clients, customers and affiliates were virtually unable to access the Bitconnect website for hours and days at a time. Coupled with this is all of the legal scrutiny they’ve faced in the United Kingdom, Canada and the States of Texas and North Carolina.
Then there’s the fact the price of Bitcoin is seemingly in free fall the same day this announcement came. It’s only natural to find the timing of the Bitconnect platform shutdown nothing less than fascinating.
So the news that Bitconnect says goodbye to Bitcoin lending shouldn’t come as a shock. Some critics were quite vocal….
“I’ve been asked what I think about BitConnect. From the surface, seems like a classic ponzi scheme. I wouldn’t invest in it and wouldn’t recommend anyone else to.” – Charlie Lee, Founder of Litecoin
Vitalik Buterin, co-founder of Ethereum made similar comments on Twitter. While I never looked at Bitconnect to any great extent I must admit to having my doubts at first glance of their video and their 1% promises.
Whether Bitconnect was a solid company with a bullet-proof business plan or just a ponzi scheme we’ll never know as Bitconnect says goodbye to Bitcoin lending.
I see this news as part of a bigger picture of the Bitcoin market maturing as massive price corrections kick in which has seen the price of Bitcoin crater by over 25% in the past 24 hours. As we go to publish, Bitcoin is hovering just over $10,000 and most other cryptocoins have been slammed in similar sentiment.
Theories about this wild swing in pricing range from the upcoming Chinese new year to worries out of South Korea to the rumors that G-20 nations will come together to roll out cryptocoin regulations. What is clear is that every January for the past four years Bitcoin took a massive price hit only to rebound to all new records. Remember; it was just one month ago that Bitcoin was nearly $20,000. Keep cool and make informed decisions with history as your guide.
Bitconnect Legal Trouble in Texas – Cease and Desist Letter Possible Signal of the End.
Bitconnect Legal Trouble in Texas emerged today as Texas Securities Commissioner Travis J, Iles issued a cease and desist letter to Bitconnect. This is troublesome for Bitconnect on at least three fronts as Texas has a population of roughly 28 million people representing just about 9% of the population of the United States itself. From a more technical standpoint this cease and desist letter effectively shuts down Bitconnect in the United States entirely as it is technically impossible to ensure just one of the 50 states of America can’t access a website. That’s because (in the best English we can muster) Geolocation via IP address can be helpful for a general sense of proximity but it’s often incorrect especially with larger Internet providers that have a national or regional footprint.
Clearly Bitconnect legal trouble in Texas extends far beyond Texas. To be on the safe side, Bitconnect should shut down access to Bitconnect from the USA entirely. We say this in light of the recent comments by William Galvin, secretary of Massachusetts. The regulatory sharks of US government at the state and federal level will, no doubt, smell blood in the water and pursue new regulatory prey – and with good reason.
Cryptocoin scams are nothing new and, sadly, innocent people are taken advantage of every day by get-rich-quick schemes now and since the dawn of time. Bitconnect Legal Trouble in Texas means the end of the line for cryptocoin scammers because the Texas filing — for all realistic intents and purposes – shuts down cryptocurrency scams in the United States.
On a related note — which slipped under the radar until now — Texas hit USI-Tech with a cease and desist order back on December 20th. We applaud Texas for taking the lead in taking action against bad actors. Cryptocoin is the future and looking brighter than ever now. A closing word of advice for EVERYBODY – Don’t mess with Texas.