BitConnect cease and desist permanent in North Carolina
Following no response from BitConnect, a cease and desist issued against the company by North Carolina has been ordered permanent.
North Carolina issued BitConnect with a securities fraud cease and desist back in January.
BitConnect confirmed notice of the cease and desist on its website on January 11th.
On January 23rd the cease and desist arrived at BitConnect’s virtual address in the UK.
The recipient refused to sign for the delivery and so it was returned undelivered.
On January 31st the Companies House changed BitConnect’s address to a default address in the event of discovered filing discrepancies.
The North Carolina Securities Division sent the cease and desist notice to the changed address on March 8th.
The delivery was again not signed for but also wasn’t returned to the Securities Division.
Despite being given ample time to respond to the cease and desist,
BitConnect has failed to request a hearing, failed to file a responsive pleading, and failed to make any other submission.
By order of North Carolina Secretary of State on July 12th, thus the BitConnect cease and desist has been made final.
In retrospect making the cease and desist final might seem pointless, seeing as BitConnect’s unofficial response was to collapse and do a runner.
However it’s important to note the cease and desists issued by North Carolina and Texas were precursors to BitConnect’s collapse.
At the time they were issued, BitConnect was gearing up to launch its BitConnectX spin-off scam.
Had authorities not intervened, it’s likely that, while BitConnect would have collapsed anyway, even more money would have been lost to the scammers behind it.
Other than a case in India that allegedly uncovered BitConnect’s owners, authorities have yet to take any action against top investors and management – most of which are scattered across the globe in hiding.