According to the latest information, the #SEC #sued five people, four of whom were #entrepreneurs, who were thought to be linked to the #BitConnect #incident.
According to the latest information obtained, five people have been sued by the Securities and Exchange Commission (SEC) regarding the Bitconnect incident. BitConnect ceased mainstream lending platform operations in 2018 following regulatory warnings and fraud allegations.
🚩SEC's Public Litigation
According to a press release posted on the SEC website, Bitconnect has contributed to raising over $ 2 billion in funding from investors by offering unregistered securities to individuals. The SEC's complaint alleges that four out of five people sued were entrepreneurs and offered and sold securities as part of the platform's lending program without registered brokers and without registering the securities with the SEC. The complaint states that supporters get commissions based on their success in soliciting funds.
In addition, the fifth person complained about was allegedly a link between BitConnect and the organizers. It is also stated that this person was present as the company representative at events and conferences and was accused of aiding and abetting unregistered offers and sales.
🚩BitConnect Event
First launched in 2016, the platform, in parallel with BitConnect Coin (BCC); The company took advantage of a so-called trading bot and offered users high returns with daily calculated interest. The following year, UK government bodies demanded that BitConnect verify its legitimacy, and operations began to close, following increased government pressure in the US by 2018.