It turns out Ethereum founder Vitalik Buterin might have been right to suggest popular Bitcoin investment platform, BitConnect, has been running a Ponzi scheme after all: the UK Registrar of Companies has threatened to shut down the dodgy platform and dissolve its operation.
BitConnect has two months to prove “cause to the contrary” until the decision has been formally enforced, according to an official filing on the British Companies House website. Should the company fail to comply with these terms, the government agency will strike off its registration and seize its assets.
“Upon dissolution all property and rights vested in, or held in trust for, the company are deemed to be bona vacantia, and accordingly will belong to the crown,” the document reads. Many have speculated that BitConnect likely stashes its funds abroad, though there is no evidence to back this up.
You can see the full letter of notice in the image below:
While the notice makes no mention of the people behind the shifty Bitcoin investment platform, another filing [PDF] reveals BitConnect was registered by a British man going by the name of Ken Fitzsimmons. According to the same filing, Fitzsimmons holds 75 percent or more of the shares in the company.
Curiously, the name of Fitzsimmons doesn’t appear anywhere on Bitconnect’s site – and nobody seems to know what his involvement in the investment platform is.
Numerous concerned cryptocurrency enthusiasts have since interpreted this lack of information as suspicious, with one user going as far as reporting BitConnect for illegal activity to the British government.
Unfortunately, details about Fitzsimmons continue to remain scarce at this point.
Shortly after the UK Companies House strike-off notice began circulating Reddit, the price of BitConnect Cash (BCC) took a dip from $287 to under $230 – though it has since climbed back up to $245. Here are some stats from Coin Market Cap:
Meanwhile, BitConnect has carried on promoting its platform to new investors. In fact, the company hosted a cheesy suit-and-gown networking event in Thailand on October 28.
Despite action-packed program featuring “acrobatic performances, dance and live entertainment,” the keynote offered little insight into the company’s plans for the future and its current financial situation.
Instead, the highlight of the celebratory gala night became this cringe-inducing hyping performance by one of the event…