Cryptocurrency & Blockchain Business

The Real Story Behind Bitconnect

A growing number of  scammed users of the known lending website “Bitconnect” have joined and formed a group called “CRYPTO WATCHDOGS” (rebranded from BITCOIN GUERRILLAS).

Their main focus is to persecute Bitconnect founders and the top promoters who have earned Millions at the expenses of users they managed to attract to the Bitconnect scheme.   

According to “Mr.D” an alias used by the group founder:

I’ve been contacted today by a known company which is the biggest crypto lawfirm in Europe, covering class-action lawsuits intercontinentally, which means all members no matter the location, are able to be represented as one group, and they have jurisdiction at a global level to chase Bitconnect.

Below is the evidence and data already gathered by this group has shown on their webpage:

The rise and fall of Bitconnect, the biggest and most vicious scam in the history of the cryptocurrency space.

What is Bitconnect and where did everything start ?

Bitconnect as an organisation started forming back in early 2016, when this group of individuals gathered together to pull-out one of the biggest scams in the history of crypto-currency space. This group was formed of: 

  • Yuris Praseteya 

At the moment, he is the current Lead Development Director of Bitconnect and former marketing Manager at OneCoin. He is a certified expert in NLP (neuro-linguistic-programming) and hypnosis. 

Yuris can usually be found in Indonesia (Jakkarta) from where he runs one of Bitconnect’s branches and refers to it as an “Educational Centre”.

But obviously, that is far from the truth. 

Sources say that he joined Bitconnect when it was only a project at a very early stage, probably before the ICO, right after a disagreement with the owners of OneCoin, and because of that, he is believed to be the second in command at Bitconnect.

He is is the top promoter in Indonesia, and along with Satish Kumbhani and Santoso Wardah, they call themselves “The Dream Team” of promoters. 

This team is believed to be the very first team from which all the underlines started as it and got to the level of expansion as we knew until 15th of January 2018 when they shut down all the lending operations, and along with that, the affiliate program.

More on: http://www.cryptowatchdogs.org/yuris-prasetya

  • Satish Kumbhani

This character is surrounded a bit more by mystery than Yuris. As far as we know, he worked as a post-man for Royal Mail. He graduated in 2011 the University of Greenwich, therefore he spent a great deal of time in London.

Following those circumstances, there are reasons to believe that there is no coincidence to the fact that Bitconnect as a company on paper, was created in London, except for the fact that Bitconnect itself, it’s not just a company, but a couple of shelf companies, hosted and managed by the most notorious accounting firms in UK, Grand Thorton UK LLP, located at Grant Thornton House 22 Melton Street, Kings Cross, London, United Kingdom, NW1 2EP. The accountants at this firms are known as “the magicians”, because they manage companies similar to that.

To put things into perspective, it’s like having a ball (the actual company) and hide it under a mug (shelf company). In your left and right you have 2 more mugs. Then they start to switch mugs between them. Find the company !

Now, to go a bit further into detail, in the case of Bitconnect, we have 4 companies from which only 3 are still valid. Information can be checked at the link below. 

 https://beta.companieshouse.gov.uk/search?q=bitconnect

Satish is believed to be one of the Bitconnect founders due to the fact that he has no upper-line, he is the top promoter all-over Asia and our intel tells us he’s got some programming skills and that he also worked on the development of Bitconnect’s roadmap.

He might actually be the very first promoter in the Bitconnect affiliate program, as his affiliate link dates back from July 2016, having Yuris and a few others as his first layer of under-line referrals.

For further evidence please check our photo evidence section at the link below.

http://www.cryptowatchdogs.org/satish-kumbhani

Just like Yuris, Satish is most of the times, positioned in the center of most footages at Bitconnect official meetings and ceremonies, and along with everything stated above, we believe Satish might be behind Bitconnect from a time when it was just a concept.

  • Santoso Wardah

This one keeps an even lower profile then the two above. There is little to no information about him, however we do know a couple of things. 

First of all, he is part of the “Dream Team”, which like I said before, it’s the very first team of Bitconnect promoters, which started the referral program. 

Evidence shows that along with Yuris and Satish, he is too, one of the directors of Bitconnect, mostly because of 2 facts:

1) He is mentioned as a director for on paper at UK Company House for the newest company formed, Bitconnect AMR LTD (newly formed shelf company for BitconnectX)

https://beta.companieshouse.gov.uk/company/10944876/officers 

At a closer look, we will see a “Santoso, Mr.”. Oddly enough, his full name is not specified. One of the reasons why this might be so, is because although on paper, there is a Mr. Santoso in flesh and bones with ID papers in order, however, due to the fact that Company House in UK allows individuals to register by not using their full name, Bitconnect has found a way to list their guy, Santoso Wardah as a director at their company, without actually him needing to use his identity to register.

Most likely, if the british government ever seeks to track Mr. Santoso from the papers, they are probably going to find somebody totally irellevant to Bitconnect, that most likely has been paid to put his signature on the papers.

2) On Twitter, in one of his posts he mentions “Our team Bitconnect Indonesia. Now I do not have an upline.” Wether it’s bad english grammar or an actual statement of him not having an upper-line, one thing is for sure. At the very least, if he ever was somebody’s referral, that upper-line has been removed, which, by using common sense, would be the equivalent of a promotion in Bitconnect’s ranks, an event that strangely coincides with his name being put on Bitconnect AMR LTD at Company House. Coincidence? You tell me.

  • Satao Nakamoto

He is believed to be the software developer of Bitconnect lending platform and also the guy “behind the curtains” who manages it even now, as we speak. Basically, he’s the “admin” of the Bitconnect accounts database and the “engineer” who took the concept of Bitconnect and made it a real thing.

Being the “guy behind the curtains”, he doesn’t expose himself too much.

Our intel only gives us 2 video footage with him in the Phillipines, however, his Facebook page is pretty much active (no pictures with him however) and it dates back since early 2016, when he started promoting Bitconnect. 

We have reason to believe that every digital leaflet for marketing campaings was created by him, therefore we suspect his skills are not only in computer programming but also in Adobe Creative Cloud and other digital editing software and webdesign as he probably created all the Bitconnect websites.

At this moment we have no evidence to point-out his nationality, however, given the fact that on the video footages we have, he speaks Tagalog language (the main spoken language in the Phillipines), he is most likely filipino, and recruited by Satish when Bitconnect was just a project on paper.

A transcript of those video footage in english is being conducted and we will make it available on the website as soon as it is ready.

  • Glenn Arcaro

He is a former Director at Bitconnect, as he was listed at Company House UK  on what is believed to be the actual shelf company under which Bitconnect operates, Bitconnect International PLC.

He was also in charge of promoting Bitconnect in USA and to handle the whole USA promoter under-line teams.

However, at a closer look, you will notice that on the date of 16th of January 2018, right after Bitconnect crashed their own coin BCC, Glenn Aracro has been officially removed as a Director of Bitconnect. Evidence of his removal from the company can be found at the link below.

https://beta.companieshouse.gov.uk/company/10948031/filing-history

Right after the BCC coin crash, Gleen has left USA and since then, he’s on a constant run hiding from potential legal investigations that might be conducted on him. 

Our intel tells that his last location on 19th January 2018 was in Romania (Bucharest) at the Herastrau Complex. 

We have notified the romanian anti-fraud Department to retain him for extradition in USA, and due to the fact he was flagged, now he can be traced even if he left the country before being caught, provided that the intel was correct.

Along with the proof of him being listed as a Director at Bitconnect International PLC, we have gathered compelling evidence on Glenn Arcaro being and important part of the Bitconnect ecosystem.

Top Promoters (from youtube):

  • Dr. Roy Murphy

  • Trevon Brown (A.K.A Trevon James)

  • Craig Grant

  • Calen Powell (A.K.A Crypto Clover)

  • Ryan Hildreth

  • Crypto Nick

The reason why all those people mentioned above were put together under the same section is because unlike the rest I reviewed who are the the top of the chain in Bitconnect, these ones, are simply promoters managed by Glenn Aracaro and the other “directors” of Bitconnect as under-lines.

However, this doesn’t make them less guilty, as a matter of fact, if Yuris, Satish, Santoso and Satao were a gun, those guys above were the bullets.

They are the main reason why Bitconnect had such a success and expansion in USA and Europe, as their Youtube vlogs went viral and they’ve managed to gather over 1 million referrals, from which they got 7% (5% later on after Bitconnect adjusted the referal program) of each referral’s reinvestment.

They have managed to earn tens of millions of USD through the referral program by using aggressive marketing and social engineering. 

Dr. Roy Murphy was focused on Europe and by faking his background (see our “Investigations Section” for video on him), he managed to compel people into joining his team and him becoming their “sponsor” (ironically, that’s what they called themselves even though they actually earned money instead of giving it).

Roy was very compelling with his videos, and he talked in a very professional manner to achieve good results in recruiting referrals.

He claimed he was a part of the original team of Bitcoin developers, that he also worked as a security consultant for MI5 & MI6 with top security clearance, claiming he can revoke people’s passports and the forged background doesn’t stop there (see our “Investigations Section” for video on him).

Trevon Brown (A.K.A Trevon James) and Craig Grant were among the first who managed to make the Bitconnect lending platform viral in USA, as they were marketing themselves as the guys who conquered the “American dream”, by showing-off their expensive cars, taking videos with them in exotic locations and basically, using any means necessary to compel people into becoming their referrals. 

Calen Powell (A.K.A Crypto Clover) used a marketing method that was somewhere between Dr. Roy Murphy and Trevon Brown in terms of approach, but he too, managed to make a good amount of money on innocent people’s backs.

Right now, he’s hiding in Vietnam to meet the Vietnamese Bitconnect team (the oldest one after Satish and his “Dream Team”), to discuss future projects and plans. He stayed for a while in Indonesia, as he was promoted by Yuris as a top promoter there, but right after the BCC crash, he left to Vietnam.

Ryan Hildreth and Crypto Nick became notorious due to the fact that they were basically teenagers who came out of nowhere and just like Trevon James, they started marketing themselves as young rich guys, feeding the minds of their subscribers with the idea that Bitconnect can make them rich also and by doing so, they managed to gather a huge amount of referrals to support their lavish lifestyle.

However, Crypto Nick was more nuanced about it regarding Bitconnet’s lifespan.

All those promoters above, together, they’ve managed to compel over 1 million people to invest into Bitconnect, and are responsible for a cumulated loss of over 1 billion USD. 

Right before Bitconnect shut down the lending program, a very strange thing happened. All of the promoters were told to remove their videos and referral links, and the official reason was the Texas & North Carolina cease & desist order. But obviously, that was just dust in people’s eyes, as the real reason was that Bitconnect was about to close doors, and they anticipated people would go after them, just like us, and they wanted to delete their tracks. But luckly, our dedicated members with various skills in I.T managed to recover most of the relevant videos and pictures and we have safely stored them on our servers for evidence, to help authorities build a case against Bitconnect and all the promoters when the time comes.

What those promoters fail to realise is that they all engaged into illegal selling activities as they had no licence to sell Bitconnect’s services.

Moreover, they earned millions of USD without paying tax, so they are guilty of tax fraud also. And to put the cherry on the top of the pie, several of them are suspected of social engineering, a crime listed on the official Interpol website, and consumer fraud. 

How did the Bitconnect scam work, what was their plan and how did they crash the coin?

The scam was extremely well-engineered and every step was planned from the very beginning to the end. 

For information regarding how the Bitconnect lending program operated, please check this link: http://www.cryptowatchdogs.org/bitconnect-screenshots

There probably wasn’t an actual trading bot or “volatility software “how they liked to call it. Has this actually been proven with evidence? Realistically speaking, they could have had a software to put on auto-pilot to trade, give it certain sell/buy order parameters. 

Interesting enough is that from January 2017 to around November 2017, their Bitconnect Coin shadowed Bitcoin in volatility to around 95% accuracy.

But later on, something happened because Bitconnect was no longer following Bitcoin’s volatility with that level of accuracy. More than that, they moved the coins into another BCC wallet address (most likely, to cover their tracks for the disaster they were about to cause), and since then, things only got worse.

The Bitconnect price would reach a peak of almost 400$ and after that it only went down in value, and things really accelerated when Bitcoin dropped to half of its value in the first 2 weeks of January. That very moment, caused a chain reaction in the Bitconnect ecosystem, most likely making it unsustainable due to the fact that Bitconnect had their assets in Bitcoin.

Coincidence or not, they were starting to experience DDOS attacks (although that was never an issue for them before and they had enough money to upgrade security and prevent this in the future), and made a big deal out of the fact that Bitconnect Lending and BitconnectX ICO were forbidden to operate in USA, so they banned all the USA users. Keep in mind that USA users were only around 10% of the total users of Bitconnect platform.

When they made the announcement that the Bitconnect lending program is shuting down, they claimed it was because of DDOS attacks, Texas an North Carolina cease & desist order, and negative market sentiment within the community. 

But, truth is, there was likely never a DDOS attack caused by outside entities, as probably Bitconnect themselves caused it in order to simulate the fact that they were attacked by competition, as Roy Murphy claimed in his video called “Texas cease & desist order” which you can find it in our video gallery at the link below.

http://www.cryptowatchdogs.org/dr-roy-murphy

After they announced the end of the lending program (and not on Twitter as an official statement but only on the website, so you basically had to log-in to check it yourself), they said in their statement that they are releasing all the loans in BCC coins at a 363.2$ calculated rate over the past 15 days.

At the begining, everybody was at ease because they misinterpreted the statement, believing that Bitconnect would actually pay their active USD loans in BCC tokens in the equivalent of the lended amount. More than that, Roy Murphy specifically said in one of his videos that he got information directly from Bitconnect that everybody will get their money back, but obviously, that was just a lie ment to calm-down the masses to buy Bitconnect enough time to delete their tracks and to execute their next move. 

As expected, and as Bitconnect already knew it would happen, the moment the BCC coins were released into people’s wallets on the platform, right away, Hell broke loose and everybody started to log-in to check their accounts. At the time of the announcement of the lending program, the BCC coin was around 300$. When everybody tried to login into their accounts, the website accessibility got sluggish, similar to a DDOS attack due to high traffic influx. That caused a massive panic-sell and whoever had BCC coins on external exchanges, sold the coins, and by doing so, the Bitconnect coin started to decrease in value. By the time people got access to their account on the Bitconnect website, the BCC coin was already heading to 200$ value at a very fast rate, and because of that, most of the people who had the coins on the platform, moved them to external exchanges to sell also before the coin crashed. It took less than 6 hours for the Bitconnect coin to go from 300$ to 9$, had a pump to about 80$ and stabilised at 30$ at the moment I am writing this article, leaving people with a loss of around 90% of their investment with reinvested interest added.

In order to “milk the cow” as much as they could, they release a statement in which they claimed to wanting to help in giving the BCC coin some stability by listing it on their BitconnectX ICO platform (their newest project) at a locked value of $150 while their BitconnectX token was valued at 50$. So basically, they allowed people to buy 3 BccX coins with 1 BCC coin, while everywhere else it was worth 30$. Not only that it was not something met to help people recover their money but it was a very well engineered move to give people no choice but to sell their BCC coins for nothing or give Bitconncet the pennies they were left with either they liked it or not, and that’s the ultimate proof they have no respect for human life.

What could have Bitconnect done? The answer is very simple. They could have announced the end of the lending program in a transparent way on Twitter, leave the Bitconnect platform’s internal exchange available (they locked it for several days so people couldn’t cash-out at the 200+ $ price listed on their website until they adjusted it to 30$), and allow people to widthdraw their BCC coins at a locked price, as they proved they can lock the price of the BCC coin on the BitconnectX ICO platform. They could have done the same for the Bitconnect platform but they didn’t.

Another elegant way of being fair to the people that trusted them, would have been to release all the loans not in Bitconnect coins but in Bitcoins, as the Bitconnect platform also has a Bitcoin wallet. Obviously, the amount should have been calculated at the value of active loans in USD with interest added.

But Bitconnet didn’t do that. After gaining the trust of 1.5 million people all over the world for more than 1 year, they exit-scammed and left people in poverty, ruined lives and broke dreams.  

They literally butchered people’s souls with their move, and even had the arrogance to post on Twitter Bitcoin news as nothing happened. 

To make things worse, they started adjusting their website by removing all evidence that they ever had a lending program, but luckily, our dedicated community managed to dig-out and screenshot all the deleted web-pages related to their lending program and we safely stored them on our website in order for people to see and for the authorities to use the evidence while they are investigating these scammers to put them into jail. 

You can check all this evidence in our archive, nicely structured on sections for you to access, as we have video & photo proofs and screenshots with entire web-pages. Basically, everything Bitconnect wanted to be dead and burried, we recovered it to put it available for the whole world to see. 

http://www.cryptowatchdogs.org/bitconnect-screenshots

At the moment of writing this article, our dedicated community is digging for further evidence on the Bitconnect scam, all of it being uploaded on the website. What Bitconnect has done, is not only a mountain of illegal actions but a moral crime against humanity, and their place is AT BEST behind bars.

We are CRYPTO WATCHDOGS, a community of people who got scammed just like you, and we invite you all to join us on Twitter and to fill-out the form we have put at your disposal to be whitelisted on our website when Bitconnect will be forced to pay us back

You can access the form here: https://docs.google.com/forms/d/e/1FAIpQLSe4inhrUoFyqXD5i-3JiPHCsKuZDHEPSViZIrZ4AYieeq99_Q/viewform

After you fill the form, you can check yourself on the LIVE spreadsheet implemented on the homepage of our website.

We are building an army against Bitconnect and we are taking our money back.

We do not stop, we do not forgive and we do not forget.

We are coming Bitconnect, we are coming for each of you who contributed in this scam, and we will make sure that the only time you will ever see how wealth looks like, is behind bars at the communal TV, because that’s where you belong!

Source: http://www.cryptowatchdogs.org
Author: “Mr.D”

If you have relevant information regarding this information gathering please leave it on the comments section below.

"Mr.D"

"Mr.D"

"Mr.D" is an alias for the leader of a group named "CRYPTO WATCHDOGS"
Their goal is to investigate Scams on the cryptocurrency space and call the scammers to justice.

7 Responses

  1. Keith Mason Reply

    Grant Thornton LLP is the American member firm of Grant Thornton International, one of the five most prestigious accounting firms in the world and the sixth largest accounting network in the world by combined fee income.[1] Grant Thornton LLP is the sixth largest U.S. accounting and advisory organization. The firm operates 58 offices across the US with approximately 7,000 employees, 550 partners, and produces annual revenue in excess of US$1.74 billion.[

  2. Simon Reply

    Satao Nakamoto is from Philippines. You can search him on Face Book -> Jeson Talingting Bana-ay. Can anyone do some legal action towards him?

  3. KS Hong Reply

    The many BCC coins valued at $150 per BCC indoors within BitconnectX are not producing any BCCX sales at $50. I have tried every day at reset since 20 Jan 18 when they lured all $10 BCC coins to the site with the $150 BCC. However, BCCX sales do happen if BTC or LTC coins are applied to a purchase. In other words the $150 BCC coins are useless to buy BCCX and mostly hurt those lenders that had to redeem their wallets at $363 per BCC when coins were selling at $22 in all exchanges and now all diluted coins not even able to buy BCCX coins due to time outs and useless ICO offer.

  4. ChrisdeVries Reply
  5. Jas Reply

    Michael crypto and one more YouTube lady has made millions and are missing from the list

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