BitConnect closes down lending platform

BitConnect has now officially closed their lending platform. They agreed to transfer all outstanding and active loans to users BitConnect wallet balance at 363.62 USD – from the website, it is not apparent how it will be possible to withdraw – if users received BitConnect tokens, which have completely crashed since, or if it will be in Bitcoin on any other currency.

The official reasons given by BitConnect are:

  • The continuous bad press has made community members uneasy and created a lack of confidence in the platform.
  • We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division. These actions have become a hindrance for the legal continuation of the platform.
  • Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.

They are still going to support the BitConnect coin and allow it to be listed on other exchanges. The question is if it has any chance to recover after taking such a big hit.

The timing is also unfortunate due to their BitconnectX ICO. We will see what will happen.