Quote from: The Yorkshire Pudd on January 22, 2018, 08:25:38 PM

Quote from: AGM76 on January 22, 2018, 07:50:24 PM

Quote from: The Yorkshire Pudd on January 22, 2018, 07:37:31 PM

Just some info for any people who still have doubts it is a scam exit.

When a loan finished you got the $ amount back in your wallet. They did not convert that $ to bcc. At some point you would have to change to BCC but you could leave that $ in your wallet until a time you decide to act.
On this exit scam they forced your $ into BCC tokens. They removed your ability to make that decision.

So not only did they do a breach of contract by ending loans early they have also made a financial decision for you by forcefully converting your $ to a token.

Do you really expect that they didn't think people would tank the bcc price by panic selling? I bet they had an account on hitbtc to buy at sub $10 and sold for above $30 as well. This would be classed as insider trading.

So that is 3 possible lawsuits regardless of it being a ponzi.
Breach of contract
Making financial decisions with your money without authorisation (or even qualification)
And Insider trading

They weren't authorised to deal in any fiat currencies and there are no laws against any of that insider trading in cryptos. The USD amount in the lending wallet is the representation of what the BCC would be worth when converted. The conversion rate was based on the exchange price. The problem they had if they just left it in the dollar wallet was when the price fell due to the news, they would have to pay more BCC for the dollars. They probably would have run out of BCC and would have had no incentive to keep the token price up after that. They instead paid everyone at a fixed rate as it was better for the coin's future not to flood the market with too many. Remember these loans weren't meant to be refunded for many months.

After getting $13 million a day in the BitconnectX ICO, I doubt they would have bothered doing something for a couple of million and being easily found out on the blockchain.

You've basically stated the middle layer of their scam.
You loaded btc into the wallet to convert to bcc and your loan was in usd value. You gave them BCC into that $ value loan but at the end of the loans you got $ back - not the original amount of bcc you loaned.

Example that you bought 100 bcc for 10 bucks each for a total cost of $1,000. You loaned them $1,000 and got interest based off $1,000.
The price of bcc soars from $10 to $100 Even though you loaned them 10BCC you still got paid interest based off the original value when you bought them for the total cost of $1,000.
Then at the end of the loan you didn't get your 10bcc back which would be worth $10,000 you just got the $1,000 back.
So if you did loan them bcc why did you not get bcc back?
Thus you did loan them usd which you clearly state they were not authorised to do.

This is the middle later of the scam which kept them going for so long.

They don't deal in any fiat. The value at the time of the loan is what they use to calculate the interest and capital return. As long as the BCC price goes up they can pay a certain amount of interest without even going into their BCC reserves. So they were never a Ponzi. Obviously, if market sentiment changes the price can plummet. Don't people realise that when they buy a bitcoin for $10k, they won't get that back if everyone sells it at the same time? In fact, just a few percent of the bitcoin being sold can halve the price. The lending only operated with the BCC token.