Trevon James confirms FBI are investigating BitConnect
In a March 5th YouTube video titled, “GLAD I DON’T KNOW WHO’S BEHIND BITCONNECT”, top investor Trevon James has confirmed the FBI are investigating BitConnect.
For those unfamiliar with the company, BitConnect pioneered the ICO lending Ponzi model in late 2016.
In January 2018 BitConnect collapsed. The owners of the company have gone into hiding and are believed to be sitting on hundreds of millions of dollars in stolen investor funds.
After claiming to be a “YouTube troll”, Trevon goes on to claim he’s “told the story” of his involvement in BitConnect to an FBI agent.
[1:48] I already told the story once to an FBI agent.
An FBI agent came to my house and um, I eventually talked to him on the phone and I told (him) the whole story.
We talked for an hour and thirty minutes. The end of the conversation was great.
The nature of the FBI investigation into BitConnect is at this stage unclear. Ditto whether they are working with out departments.
What we do know though is that the FBI handles criminal cases. Potentially this could mean those who ran BitConnect could be facing arrest, extradition to the US (if abroad) and prison time.
James is currently scheduled to testify before the South Carolina Securities Division on March 15th.
Like the FBI investigation, the nature and scope of the Securities Division’s case has yet to be made public.
James maintains his innocence, based on his representation that he knows nothing about BitConnect as a company.
[4:49] I’m actually glad that I don’t know anything like.
I remember there were times man, where I would ask Glenn.
I would say, “Man, when is this gonna happen. When is this…” And he would say, “The system doesn’t want me to talk about that. Doesn’t want you to talk about that. The System… I can’t tell you that”.
And I’m like, “Damn!” Y’know? But now I’m glad (laughter).
I’m glad I don’t know anything… so that means that there’s no proof that I knew anything.
So, God’s plan (more laughter).
Glenn Arcaro is the most senior US-based BitConnect investor. He is also believed to have played a primary role in the day-to-day operations of BitConnect domestically and abroad.
Following BitConnect’s collapse, Arcaro fled the US. He is believed to be hiding out in Asia.
Getting back to Trevon James and his upcoming testimony hearing;
Whereas an FBI investigation would likely focus on BitConnect’s business operations and those running the scheme, the South Carolina Securities Division are a financial regulator.
Within the context of investigating BitConnect, the primary avenue of investigation would likely revolve around establishing an unregistered securities offering and holding those responsible.
In addition to those who ran BitConnect, as a top promoter and net-winner of the company in the US, James would certainly be a person of interest.
Despite claiming he thinks he “doesn’t need a lawyer” because he “don’t trust” them, James continues to display an astonishing lack of understanding of US securities law.
Driving around in a leather-trimmed luxury SUV purchased with stolen BitConnect funds, James continues to represent that a securities investigation into BitConnect would seek to establish whether cryptocurrencies as a whole are securities.
The issue with BitConnect was its ROI lending platform.
Through which BitConnect and promoters such as James solicited investment through, on the promise of a ROI.
The ROI was generated passively and paid out of subsequently invested funds, qualifying BitConnect’s lending platform as both a security and Ponzi scheme.