Federal regulators sued BitConnect alleging that the cryptocurrency exchanged conducted a "fraudulent" and unregistered offering and sale of securities that succeeded in obtaining more than 325,000 Bitcoin (BTC-USD) or $2B from investors worldwide.
The U.S. Securities and Exchange Commission claims in a new lawsuit that BitConnect and its founder established a worldwide network of "promoters" and rewarded them with commissions, which were largely concealed from investors, between January 2017 and January 2018, according to the suit.