The BitConnect Ponzi scheme was the best-known Ponzi scheme in the history of crypto.
BitConnect was a cryptocurrency investment program, but it turned out to be a scam.
Bitconnect used a pyramid model with different levels. Investors got rewarded when bringing new investors into the program.
Bitconnect promised an average daily return of one percent! But this only worked because more and more investors joined the program. Then they paid the other investors who were in the program in the first place. BCC, the cryptocurrency of Bitconnect, had a market cap of over $2.6 billion!
In 2018, Bitconnect collapsed – like every Ponzi scheme!
Bitconnect is still in the focus of the SEC.
The SEC filed charges against:
- Trevon Brown
- Craig Grant,
- Ryan Maasen
- Michael Noble
They were all very active back in 2018.
Because of the size of the Ponzi scheme, the SEC is very interested in the Bitconnect case.
But what does that mean for the whole crypto industry?
It shows once again how much the crypto industry has matured over the years!
Back in 2017, real applications were rare in the crypto industry, and many scams have emerged. But, Ponzi schemes of that size got less. And DeFi satisfies the demand of many people to earn a return on their crypto investments.
We keep a close eye on new developments in that case and keep you updated.