Remember Bitconnect and Carlos Matos? The guy screaming on a stage how everyone told him Bitconnect was a scam but he proved them all wrong? Well, turns out he was a scammer.
The US Securities and Exchange Commission has released a statement after investigating into Bitconnect, specifically a Trading Bot. Honestly, after re-watching the Carlos video the results are not that shocking. Long and short of it, Bitconnect has used none of the money invested in the Trading Bot. Subsequently, they managed to make almost $2 billion between 2017 to 2018.
Bitconnect Scam Methodology
Sadly, it was quite an easy $2 billion scam as the company “siphoned investors’ funds off for their own benefit by transferring those funds to digital wallet addresses”. The money was initially distributed to a network of promoters around the world to promote the scheme. The plan was to find as many scam victims as possible. Unfortunately, the massive amount of money on their hands allowed them to establish a powerful online marketing strategy.
At this point, there are 5 individuals under investigation by the SEC and in a parallel case run by the Department of Justice, lead promoter Glenn Arcarohas pleaded guilty to the charges.
SEC is Increasing Activity Regarding Crypto
It seems like in the past few weeks, SEC has been actively pursuing numerous investigations into different sections of the cryptocurrency market.
In another recent statement, they have announced that they were looking into Crypto-Exchange Developer Uniswap Labs. However, this one has a much milder tone. With a report stating that they are at this point simply demand more information regarding the investment process.
SEC chief Gary Gensler said in August that the SEC needs stronger regulatory leverage to oversee DeFi platforms.
Trading Bots, do They Work?
As of what Trading Bots are, it needs its own article, if you are interested to know about them, you can tell us down in the comment section. As of their practicality, there are some legitimate bots like Kucoin Trading Bot or Botsfolio. However, one must remember that they are only software and can never guarantee profit. You should thread carefully while trusting in them and remember that they can and will make wrong decisions.
Where can I Buy Bitconnect?
YOU DON’T. Bitconnect was a scam.
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