BitConnect has shut down its lending and exchange platform, and will reportedly refund investors.
The company published the announcement on its website, stating that it will release all active loans in its lending wallets at $363.62 per BCC token.
BitConnect will also close down its exchange and will change its website to a wallet and news platform.
The company cited “bad press”, DDoS attacks, and its multiple legal troubles as reasons for closing down.
BitConnect was recently issued with multiple Cease and Desist letters from securities regulators in the US, which labelled the company fraudulent and dishonest.
The BitConnect coin had no public whitepaper and operated similarly to a ponzi scheme.
BitConnect also attracted scrutiny and scepticism from high-profile developers in the cryptocurrency community, who labelled the cryptocurrency a scam.
Following the shutdown announcement, BitConnect’s value took a dive from over $300 to $32.
The company said it will continue to work on its BitConnect X cryptocurrency, however, and will build a new exchange for the token.
The BitConnect X website will list the new coin and the original BitConnect coin on its exchange.