ChainBleedv0.1 · open intel
← back to feed·RUG2021-08-21 · 4y ago
Incident · SLOWMIST

BitConnect

Scam
Estimated loss
$2.00B
VERDICT —UNRATED
Verdict pending. Auto-ingested incidents are reviewed before a public verdict is rendered.
▰ METHOD
RUG
RUGBYTECODE CATCHABLEAI SCANNABLE
Root cause

Root-cause analysis not yet published. The incident description below contains all currently available signal — review the attack transaction directly for definitive forensics.

Forensic narrative

In May of this year, the SEC filed a lawsuit against five people suspected of promoting BitConnect. The SEC believes that BitConnect is an unregistered digital asset securities product, and the program has raised more than $2 billion from retail investors through the promoter network. BitConnect is a cryptocurrency investment plan with the characteristics of a Ponzi scheme launched in 2017. Its token BCC was one of the 20 most valuable cryptocurrencies at the time, with a market value of more than 2.6 billion U.S. dollars. In September, the founder of BitConnect, Glenn Arcaro, admitted to participating in a fraud scheme, which was allegedly amounting to US$2 billion. Attack method (per SlowMist): Scam. Reported loss: $ 2,000,000,000.

Primary source
https://www.justice.gov/opa/pr/56-million-seized-cryptocurrency-being-sold-first-step-compensate-victims-bitconnect-fraud
Sourced from
slowmist
Technical record
chain
protocol
BitConnect
bug_class
rug
date_occurred
2021-08-21
loss_usd
$2,000,000,000
source_id
sm:bitconnect::2021-08-21
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