It’s never all great and shiny as it appears, seemingly this pertains to a similar news this week. The cryptocurrency project was all hyped about and has recently been accused and blamed for being involved in the embezzlement of millions of digital currencies from the investors.
The folded cryptocurrency based project ‘BitConnect‘ renowned for touting as the “self organizing and regulating financial system” which has been in the news for a while now under the market space revolutionary ideas for advancement attracted various celebrities and investors and even offered them some over the top attractions like the interest per day equivalent to 1 percent. All this clearly made a lot of people think that it is a scam.
The project invited investors to “give or lend” them in digital values majorly being the Bitcoin (BTC) and these were further converted into BCC, the platform owned coin.
The Indian head of BitConnect, Divyesh Darji the man majorly responsible for promotion and marketing for the scheme has been purported to be arrested at Dubai following his arrival at the airport, from Ahmedabad by Gujarat’s CID (Criminal Investigation Department).
As per the local publication the Financial Express, the investigation authority is convinced that the promoters of the BitConnect project gained amount close to $14.5 million (1.14 crore Indian Rupees) from thousands of investors.
BitConnect was launched following the immediate and powerful decision made by the Indian Prime Minister Narendra Modi to ban 500 and 1000 rupee notes from the country.
2016 was the year when 90 percent of all transactions carried out used the cash as a mode. The immediate ban was reportedly made to fight corruption and black money, otherwise coined as the undeclared income.
The drastic decision gave rise to an economic crisis. The population ranging from the farmers to all middle-class men, the people struggled to survive the bad economy. The upheaval was massive, though the country has survived through, during the period the alternative of securing funds in form of digital money and hiding from the government would have sounded mellifluous for sure.
The dream of getting away with it all with working up the way in digital assets didn’t last long. In January the project immediately shut all loans being provided on the platform with all remaining assets converted to BCC instead of BTC, being the original investor’s mode.
This seems to be the case because the price of BCC that time was $363.62. And now the drought has hit the company hard, the platform owners aren’t anywhere to be found and coin values to $0.67 today. All investors actually witnessing a massive loss and getting out of pocket.
DGP Ashish Bhatia of CID dept said “The investigation team found the company to be registered in the UK and had one office based in Surat, Gujarat. BitConnect came out with their own BitConnect coins (BCC) following the demonetization and promoted the same on social media platforms and various common gala functions around the world. They attracted investors by offering 60 percent of interest on their investment every month and various referral bonuses and interests.”
