The management behind the controversial cryptocurrency Bitconnect Coin (BCC), which was suspected of being a Ponzi scheme, has announced that it is shutting down its lending and exchange platform.
Bitconnect said on its website that the lending operation is winding up immediately with the release of all outstanding loans, while the BCC exchange platform will close in 5 days.
The platform promises to refund all outstanding loans to the user's BitConnect wallet at the rate of $363.62. The investors can withdraw their BitConnect coin currently in QT wallets that was used for staking, the Team BitConnect said.
BitConnect.co website will operate for wallet service, news and educational purposes.
The management cited multiple reasons for halt of lending and exchange platform. Notable is the cease-and-desist letters it received recently from the Texas State Securities Board, and from the North Carolina Secretary of State Securities Division.
It blames "the continuous bad press" for making community members uneasy, which created a lack of confidence in the platform.
Bitconnect claimed that closing the lending platform will allow it to be listed on outside exchanges giving more options for trading. It pledges to make BitConnect coin available to merchant websites.
BitConnect X ICO is still functional and it is building an exchange platform on the BitConnect X website, where BitConnect Coin (BCC) will be listed.
The cryptocurrency community, including ethereum founder Vitalik Buterin, in recent months had accused BitConnect of constituting a Ponzi scheme.
BitConnect Coin is an open source, peer-to-peer, community driven decentralized cryptocurrency. The BCC is said to be essentially useless now that the trading platform has shut down.
The digital currency's price plummeted 87 percent in response to the news.
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