After the story of the defunct Bitconnect went public, the authorities have appeared to be following anyone associated with what was a popular crypto platform, Bitconnect. One of the people connected to Bitconnect who was also the entities promoter, Calen Powell, revealed through a YouTube video that officers from the FBI had restrained, questioned and threatened him. This was not all; he also told of his painful ordeal when the FBI seized all his money and electronic gadgets when he tried to enter the United States. The Former industry giants raised eyebrows when they suddenly exited the market which prompted a serious inquisition into them and their operations.
After thorough investigations, Bitconnect was declared as the biggest crypto scam to date. This Ponzi scheme had gotten away with investors’ money by falsely claiming high returns with little to no risk to all those who made an investment. Bitconnect had gained a huge following and huge trust from customers as they went about actively trading cryptocurrency tokens. They also did a lot to push Bitcoin as a solid and full proof investment vehicle. Findings of the investigation regarding Bitconnect showed that the firm had registered an official address in the United Kingdom which was only a cover up to mask their shady dealings.
In an official statement, investigators said that the fraudulent firm used to have promoters mention special software that determined how high or low Bitcoin points would be during the purchase and sale of the tokens. The difference on points would be your earning, where the firm had promised a figure of 365 percent per year at 1 percent daily. The self-proclaimed “cryptocurrency nomad”, Calen Powell, has been defiant claiming that all the suspicions surrounding him were baseless. The cryptocurrency nomad’s newest home attracted the attention of the investigators who sought to know if the home had been acquired using stolen assets.
In a YouTube video, he further reiterated his innocence. He also expressed confidence that his legal past would serve to exonerate him from any actions. He stated that the authorities had all access to his past both personally and business-wise and that he was an open book. He also revealed that he would co-operate with investigators from the Federal Bureau of investigations and hoped that his Passport would remain unsanctioned. He expressed a desire to get a second passport just in case his passport got blocked, following in the footsteps of former Bitconnect director Glenn Arcaro in order to travel with ease. While reiterating his desire to cooperate with the FBI, he further spoke of not being contacted by the SEC and that he would be seeking legal counsel to represent them in the face of allegations.