Nothing like a Crypto Investor Scorned; Crypto Watchdogs Warn BitConnect
BitConnect is finding itself on the receiving end of several lawsuits, including Crypto Watchdogs, which is sternly warning it and other crypto fraudsters that it has them squarely in their sights.
When you do wrong by people, expect repercussions.
This is the lesson the folks behind BitConnect are learning since its alleged illega Ponzi schemel activities in the crypto space have come to light. Those who believe they were duped are suing the outfit, and one stands out just because of the name they chose – Crypto Watchdogs, and their ominous message:
“We are raising an army to claim back what was stolen from us. We are coming for every single one of you! We know where you are, what you're doing and when!”
Let’s discuss this group, and how BitConnect has landed itself as the defendant in a growing number of lawsuits.
The Crypto Watchdogs
Six people, who are remaining anonymous, formed Crypto Watchdogs to put the fear of their wrath into crypto scammers. They were inspired to form the coalition after BitConnect ripped them off, they allege. Instead of sitting back and whining about it, the group’s members decided to stand up for themselves, and what better way to do that than file a good old-fashioned lawsuit.
They filed a federal lawsuit against BitConnect, but that’s not all. They also set up social media accounts, as well as their own website in which it is stated:
“Dear community, as we promised you a few weeks ago, we are now, preparing for the long-awaited class-action lawsuit against Bitconnect, and to let them face the full rage of 1000 investors! Bitconnect's days as a business are counted, and clock is ticking!”
Here’s a tweet it posted Tuesday.
We would like to thank @olgakharif from Bloomberg for writing such an amazing article on us. As you remember, we've told you that we were collaborating with several big newspapers to spread the word about our cause. We are happy to see it happening Enjoy!: https://t.co/jOdCSDIpGx— Crypto Watchdogs (@cr_watchdogs) February 13, 2018
What BitConnect allegedly did to receive all this wrath
BitConnect shuttered its operations in January after receiving two cease and desist orders – one from the Texas State Securities Board, and the other from the North Carolina Secretary of State Securities Division.
BitConnect had long been suspected of being a Ponzi scheme, and when Texas officials released their statement, they minced no words in sharing how they felt that was absolutely the best description.
One of the issues related to BitConnect soliciting investors for cryptocurrency-based programs that the company claimed would deliver annualized returns of 100% or more, which is a nearly impossible claim to make good on.
Also, the Texas Securities Commissioner found that the BitConnect investments were securities, but were not registered as required by the Texas Securities Act and State Securities Board Rules and Regulations. BitConnect wasn’t registered to sell securities in Texas, either as required.
BitConnect, based in England, had been issuing its own currency, called BitConnect Coins. Before it shut down, BitConnect boasted having placed 9.4 million of the coins into the online cryptocurrency marketplace, representing a market value of $4.1 billion as of Jan. 3. It had even set about holding an initial coin offering.
In an official announcement posted on its website, BitConnect’s powers-that-be seemed to blame everything but the kitchen sink for its downfall.
Take a look:
The continuous bad press has made community members uneasy and created a lack of confidence in the platform.
- We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division. These actions have become a hindrance for the legal continuation of the platform.
- Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.
- The continuous bad press has made community members uneasy and created a lack of confidence in the platform.
We’ll keep you posted as to how these lawsuits all pan out.