Jan 4 2018 Texas State Securities Serves Bitconnect An Emergency Cease & Desist Order Jan 4 2018

in bitconnect •  2 years ago 

I thought this was important to share.

Cryptocurrency is new to me and I am in the informational and learning stage.

Just reading the details of the Order is educational.

Smarter people than me thought this particular one was run a bit like a Ponzi Scheme.

Learn with me, follow the link for the whole Cease and Desist order .


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This is really interesting. I, too, am not a lawyer but it seems like there's some serious smoke here. We'll find out if there's a fire. I've been checking on the currency and it hasn't really reacted much to this news so I don't really know what to make of it. You'd think you would see some selling if for no other reason than to protect yourself to buy back later if nothing comes of it. This should be very interesting to watch unfold....

I'm going to resteem this to see if we can get some bigger "fish" on here to weigh in....

A quick read, and I must insert the disclaimer "I am not a lawyer" and I don't even play one on the Internet, suggests that Texas found that there were two significant problems with the way that BitConnect was running their business.

First of all they were using directly invested funds to issue loans without actually owning the funds to back up covering those loans at any given point. That alone is probably enough to get them prosecuted as a Ponzi scheme, with the cryptocurrency issue being an entirely separate issue and probably in place to provide cover for that activity

Secondly, they were using that cryptocurrency has cover for a very traditional investment roll, which the cease-and-desist goes into in the latter portion. And when I say "very traditional investment roll," what I mean is "really good scam, without the really good part."

In effect, cryptocurrency is really just the smoke that they used to cover the fire of fraudulent activity. Which, honestly, I feel goes on a lot across the entire industry, if we're being truthful. BitConnect was running a pretty obvious Ponzi scheme even from a very superficial read of the facts. I imagine the cease-and-desist will readily turn into some actual charges and taxes without too long a wait.

yes it is very important and thanks for your effort to share ,good to know