BitConnect — Alleged Ponzi Scheme

BitConnect Lending and Exchange Operations Shut Down after Allegedly Being Confirmed as a a Pyramid Scheme

BitConnect was widely seen as a rather controversial investment and many allegedly speculated that it was a fraud or a Ponzi scheme.

Recently, said speculation was verified when BitConnect’s lending and exchange operations were shut down and a temporary restraining order froze its assets, according to Reports from U.S. District Court (Western District of Kentucky) under review by attorneys Alan Rosca and James Booker.

Peiffer Rosca Wolf securities practice lawyers are investigating BitConnect’s alleged Ponzi scheme.

Investors who believe they may have lost money in activity related to BitConnect’s alleged Ponzi scheme are encouraged to contact attorneys Alan Rosca or James Booker with any useful information or for a free, no obligation discussion about their options.

The aforementioned temporary restraining order (TRO) allegedly requires the parties to disclose cryptocurrency wallet and trading account addresses, in addition to the identities of anyone to whom BitConnect has sent digital currencies within the last 90 days, according to Reports from U.S. District Court.

What is more, BitConnect International PLC, BitConnect LTD, BitConnect Trading LTD and Ryan Maasen are also all allegedly prohibited from transferring any assets they may possess until they are granted permission by the court, according to the TRO.

Investors Allegedly Unable to Sell BitConnect Tokens; BitConnect Price Plummets from over $400 to under $10

What may be particularly troubling for investors is that BitConnect owners are no longer able to sell their tokens, even though the website guaranteed that its going to be open for another week, according to the aforementioned TRO under review by attorneys Alan Rosca and James Booker.

BitConnect was trading at over $400 and now is trading at under $10. Hence, BitConnect has dropped over 90% if its value and investors are not only losing their profits, but also their initial investments, according to the TRO.

BitConnect allegedly rewarded new investors with so-called “promised profits” whilst also purportedly taking money from older investors in true Ponzi-like fashion, according to Reports following the case.

As one might expect, the BitConnect community has expressed its displeasure and the entire BitConnect community is lashing out and now the programmers of BitConnect have changed the main “subreddit” for the “altcoin” to private to ease complaints, said Reports note.

The TRO will reportedly expire on February 13.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of investment-related fraud or misconduct and are currently investigating BitConnect’s alleged Ponzi scheme. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of BitConnect’s alleged Ponzi scheme may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520 or via e-mail at arosca@prwlegal.com or jbooker@prwlegal.com.

Alan Rosca (1252 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.