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BitConnect closes crypto exchange, blaming regulatory warnings, bad press

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The company behind the cryptocurrency BitConnect yesterday announced that it was closing its lending and exchange platform.

In a blog post, published yesterday on the company’s website, BitConnect said that its lending service would be shut down immediately, while its exchange platform would close in five days. The company explained that its website, BitConnect.co, would continue to operate for “wallet service, news and educational purposes”.

BitConnect said that it was forced to make the move due to a number of reasons, including “bad press” and the fact that it had recently received cease-and-desist letters from regulator in Texas and North Carolina. The company also said that it had been a target of several dedicated denial-of-service (DDoS) attacks, which “have made the platform unstable and have created more panic inside the community”.

BitConnect has faced accusations of running a Ponzi scheme, with several prominent figures in the cryptocurrency industry, including Ethereum founder Vitalik Buterin, having levelled criticism at the company in recent months.

Despite the closure, the company said that it would continue its support for the BitConnect coin, adding that “closing the lending platform will allow Bitconnect to be listed on outside exchanges giving more options for trading”. The company said it was already working on building a new exchange for the coin.

“This is not the end of this community, but we are closing some of the services on the website platform and we will continue offering other cyptocurrency services in the future,” the company wrote in the blog.

The BitConnect price has taken a beating after the announcement. As of 14:01 GMT it stood at $8.88, down 95.9% from the same time yesterday.

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