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BitConnect Shutters Crypto Exchange Site After Warnings About Regulator

The company behind the controversial cryptocurrency BitConnect has declared that it will shut down its crediting and exchange platform.

BitConnect’s crediting service will be closed immediately, while its exchange platform will close in 5 days, in accordance with a post, that was published on its website on Tuesday.

“In a word, we are closing crediting service and exchange service while BitConnect.co website will work for wallet service, news and educational aims,” the post explained.

The declaration blames a bunch of factors, may be most noticeably the cease-and-desist letters issued in recent days from regulators in Texas and North Carolina.

Both letters stated that BitConnect was appealing in the sale of unregistered securities bound with a token sale.

“We have received 2 Cease and Desist letters, one from the Texas State Securities Board, and the other one from the North Carolina Secretary of State Securities Division,” the BitConnect team wrote. “These actions have become an impediment for the legal sequel of the platform.”

The post also blamed “bad press” that has “made community members troubled and created a lack of confidence in the platform.”

BitConnect has been indicted of constituting a Ponzi scheme, and several figures in the space, including the founder of ethereum, Vitalik Buterin, have levied criticisms against it recently.

The BitConnect team also blamed a row of dedicated denial-of-service attacks (DDoS).

Since Jan. 13, BitConnect’s Twitter account has blamed DDoS attacks for problems with its website.

Nevertheless the cease-and-desist letters, BitConnect said that its in-progress initial coin offering (ICO) will go on, and that it is building an alternative exchange for the BitConnect token.

“This is not the end of this community, but we are closing some of the services on the website platform and we will keep offering other cyptocurrency [sic] services in the future,” the team wrote.