In a news published on their site, the Texas State Securities Board issued an Emergency Cease And Desist order for BitConnect planned token sale on January 10th.
According to the order, BitConnect was claiming to offer tokens with 100% annual returns, which the TSSB determined qualify as unregistered securities.
BitConnect was also looking for recruiters to promote its token, which the Texas agency determined qualify as agents who are not registered to sell securities in Texas.
At the moment of writing, BitConnect token was trading at $385 on Coinmarketcap, on a $2.37 billion market cap. It's worth noting that between the date of the cease and desist order - January 3rd - and now, the market cap of BitConnct shrunk from $4.1 billion to $2.37 billion.
In certain circles, the lending facilities of BitConnect, as well as their unusually high profits claims are frowned upon as being unrealistic at best, and scammy, at worst..
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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