As the old saying goes, if something looks too good to be true, it probably is. This certainly seems to have been the case with Bitconnect.

Since it was launch in 2017, Bitconnect has been described as a Ponzi-scheme, largely thanks to the fact that users had to send bitcoin to the company in order to receive Bitconnect Coin. Users were promised that the Bitconnect Coin (BCC) would offer returns of up to 120% per year.

Bitconnect also operated a lending service in which users could use Bitconnect to lend their BCC to other users, for which they would then receive interest. The lending service coupled with a multi-level referrals system and the fact that the managers of the company were no-where to be seen, made many users wary that this was a Ponzi.

Now the company has shut down the Bitconnect lending and exchange service. A message posted on the Bitconnect website stated that the company had received two cease and desist notices from securities regulators in the US, which left them with no option but to close down the platform. When this occurred, BCC swiftly fell in value from $437.31 to just $35. However, the website and wallet service remains operational.