BitConnect Hack

BitConnect was a Ponzi Scheme that managed to raise approx. $2 billion dollars from investors before it collapsed.

BitConnect is a crypto lending platform, which claimed it used a trading bot for earning interest.

In fact, BitConnect was suspected of being a Ponzi scheme because of its multilevel marketing structure and impossibly high payouts (1% daily compounded interest). BitConnect interest fluctuated greatly with the volatility of Bitcoin, which its value was tied to.

The BitConnect Coin was among the world's top 20 most successful cryptocurrency tokens until its price collapsed after traders began losing confidence. BCC rose from a post ICO price of $0.17 to an all-time high of US$463 in December 2017; it declined to US$0.40 as of March 11, 2019. BitConnect released outstanding loans at a rate of US$363.62 to the BitConnect Wallet in form of BCC. However, soon after that news the internal exchange price and liquidity collapsed resulting in a nearly complete loss of value. Prosecutors managed to seize crypto assets worth $57 million from Arcaro, BitConnect's biggest partner in North America.