Government notices regarding the lending platform killed it while other lending platforms are yet to get their letters.
right. i would like to see texas shut down Davor which is based in europe, long story short they cant do shit.
Bitconnect was supposedly "based" in Europe too. See how well that worked out.
I thought it was based in southeast Asia but just hired a bunch of European salesman.
There was a UK address on the Texas C&D. The point being that it doesn't matter what the scammers claim their location is. Ponzi schemes are illegal in many countries regardless of their origin.
It's up to people to decide whether they think it's a ponzi or not. All cryptos like bitcoin are also ponzis as there is no wealth created. Anyone making a gain is balanced equally by people making a loss (excluding the profit for the broker or the exchange - which bitconnect also received on their exchange btw) and it's purely by sheer volume and buying activity being greater than selling that the price goes up (through marketing as the price is not based on anything other than speculation from buyers and sellers - i.e. no wealth is generated). People can't all cash it out at that price, everyone should know that by now, and it doesn't take much selling to crash the market (only a few percent needs to sell to completely annihilate the market).
I know for sure these are not regulated or illegal in the UK and no courts in the USA have ever decided they would be classed as a security in terms of any case law, unless you know of any? Bitconnect were already complying with the Texas cease and desist before closing and people from certain states weren't able to make new loans (from what was said on youtube videos the day after they received it they'd already implemented a check for people signing in to confirm their location). It doesn't mean they were actually doing anything illegal as most states didn't bother, and I'm sure it wasn't the people in bitconnect complaining to those states to take action.
It seems like people want to go after certain cryptos they don't like the marketing of instead of allowing them to be unregulated like they always have been before. At least bitconnect lending generated the company profits (the lender didn't mind giving it to bitconnect either as long as they still profited so it's not as if they were defrauded). The coin was still around $300 when they closed the lending (and also still when they reopened their exchange) so it wasn't as if they closed after the market crashed. If there wasn't so much misunderstanding about their platform and so many complaints from outsiders, bitconnect lending would have been fine for a while longer and probably would have just slowly reduced their interest rates and thought of some other incentive for their coin.
So I don't know why people keep putting out so much misinformation about them breaking any securities or money issuing laws etc when it wasn't the case for UK at least.