Federal authorities have accused a group of scammers of promoting a securities offering tied to the digital currency that gained over two bln USD from consumers. They were not registered correctly.
The Securities and Exchange Commission filed the civil lawsuit Friday in federal court in Manhattan. It alleges that an outfit called BitConnect used a network of promoters to sell the securities without registering the offering with the SEC or registering themselves as brokers as required by law.
The promoters touted the benefits of investing in BitConnect’s project, producing video-based feedbacks, and rolling them out on social media platforms. The promoters ostensibly gained fees based on their success in bringing in funds from customers.