Hey, hey, hey
Wassa wassa wassa wasssa wassaaaup Bitconnect.
Arguably the best thing to ever come out of the shitcoin space has to be the series of bitconnect memes. Sure it cost investors billions but what we got back in laughs is priceless. Back in 2017, Ponzi's were everywhere, all you had to do was spin up an ETH smart contract from a GitHub repository and bobs your uncle, you're in business and you can raise a bunch of money and disappear into the night sky.
The rug pulls were far more instant and frequent, as people knew very little about how this technology works. Now, the rug pulls are still there, they're just a little smarter, but have not slowed down, only pivotted.
I am sure there will be many a story coming out of 2021-2022 scams, off the top of my head I can think of wormhole, squid game token and save the kids, but those are stories for another time.
Anyway, back to Bitconnect, the Ponzi was a massive story with many promotors getting called in for questioning, some were sued, and others just went into hiding.
Bit CON artist
The U.S. Department of Justice announced Friday that a big part of the story was finally coming to an end. A federal grand jury charged the BitConnect founder Satish Kumbhani with defrauding investors of some $2.4 billion.
Kumbhani had been on the run for years and many thought he would never get his day in court, but the DOJ was not going to sleep on this one. Many Americans were caught up in this scandal, so there was a keen motivation to get the head of the operation.
Kumbhani got quite an impressive list of charges such as conspiracy to commit wire fraud, wire fraud, conspiracy to commit price manipulation, operating an unlicensed money transmitter, and conspiracy to launder funds internationally for "orchestrating a global Ponzi scheme"
Bitconnect is also said to have allegedly traded cryptocurrencies using his investors' funds, and repaid earlier investors with the funds he received from later investors. All but confirming it is a total ponzi.
Amazing how you need so much information to confirm it's a scam, but that just shows you now a lot of the tokens you probably hold today are scams, you just don't realize it yet.
While the DOJ did get the head of the snake, I am sure there are still lower management and a few promotors that made off with big bucks, that will also be pulled in, now that you have the head of the organization its only a matter of time before he rats out his crew.
Riding on the tails of bitcoin
The reason BCC or Bitconnect was able to get so big and run for such a long time was through the timing. It was in operation during a bitcoin bull market, making it easier to make money creating more BCC and getting people to swap BTC for it, then using that BTC to trade and return back dollars to customers.
The bull market hid a lot of financial fuckery but as soon as bitcoin's run ended, and maximum pain could be inflicted it turned down.
Turned down for what?
To rek a generation of noobs that's what.
We all had to learn the hard way and some of us paid the price and turned to the books and started to learn and get bitcoin. While others continue to jump from token to token hoping to hit black or red at the roulette table.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
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