Cybersecurity
Crypto Lending Site's Shutdown Renews Ponzi Scheme Claims
- BitConnect says exchange will resume ‘work as usual’ Thursday
- Value of startup’s digital tokens drops as much as 95%
Five Reasons 'Bitcoin Jesus' Loves the Digital Currency
This article is for subscribers only.
BitConnect isn’t letting this week’s closure of its cryptocurrency exchange and lending operations deter it from attempting to raise funds though another digital token offering.
That isn’t sitting well with existing coin owners, who have seen the value of the tokens tumble by as much as 95 percent since Monday. Critics on Twitter and Reddit have renewed allegations of fraud and are equating the company to a Ponzi scheme, where an operator pays off old investors by raising money from new ones.