BitConnect has been hit by a second cease-and-desist letter from state regulators in the space of just a few weeks. In a release dated 9th January, the North Carolina Securities Division detailed the reasons for the cease-and-desist request, writing that BitConnect had not registered itself to sell or deal in securities in the state.

The release goes on to say that the company planned to offer two unregistered investments, called BitConnect Staking Program and BitConnect Lending Program, during the initial coin offering. The order also states that BitConnect had failed to disclose material facts when promoting and offering the investment opportunities to the public. The company has 30 days in which to offer a response. If BitConnect does not respond, the temporary cease-and-desist request will become permanent.

In the first week of January, the State Securities Board in Texas issued a cease-and-desist request against BitConnect, alleging that the company had attempting to sell investments using social media channels and posts on sites such as Reddit and Craigslist, while failing to fully disclose the risk associated with this type of investment. In a statement given at the time, the Texas State Securities Board described investments in cryptocurrencies as \"risky.\"