In a way, it is good to see regulators crack down on cryptocurrency-related scams. Especially when such scams have proven to be harmful time and time again. BitConnect is clearly one of the more dubious schemes in all of cryptocurrency today. In North Carolina, it is no longer allowed to operate as of this week. This is a decision by the Securities Division of the North Carolina Department of Secretary of State. A temporary cease and desist order is a good place to start.

It is good to see cryptocurrency scams such as BitConnect face some legal push-back at this time. Although Onecoin is still the biggest threat in the world of finance right now,  there are other projects we need to worry about as well. BitConnect is a clear example of how people can be tricked into believing the offer is completely genuine. With no clear business model and semi-guaranteed profits, it is evident BitConnect has lots of questions to answer. Whether or not we will ever get those answers, has yet to be determined.

Another Nail in the BitConnect Coffin

More specifically, the notorious Ponzi Scheme has been issued a temporary cease and desist in North Carolina. Although it may not have much impact, it’s a step in the right direction. The company is no longer allowed to offer for sale any securities unless they are officially registered with the proper authorities. So far, that is not the case, and the company will face scrutiny because of it. Anyone under the direction of this company needs to register as a securities dealer or salesman as well.

Everyone knows how BitConnect has no legal intentions whatsoever. In fact, the company will not register its securities with any official entity. It would require a degree of transparency the company cannot and will not offer at this time. The company is in violation of North Carolina’s Securities Act. For now, the cease and desist lasts for 30 days, but it can be extended if needed. After all, the company won’t register or request a hearing whatsoever.An interesting turn of events, although other US states need to follow North Carolina’s example in this regard.

It is not the first time BitConnect faces a cease and desist letter either. More specifically, they received a similar document from the Tax Securities Board earlier this month. This Ponzi Scheme is also facing regulatory scrutiny in Great Britain as we speak. Whether or not the company will shut down its services anytime soon, remains unknown. We can only hope not too many people lose money because of this illicit offering.

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