Investor Alert: Fraudulent Notice Falsely Claims Refunds Are Available from BitConnect Crypto Scam

Nov 30

fraudulent notice that falsely claims to be from the Texas State Securities Board is telling people they can receive partial refunds of their investment in BitConnect, an overseas cryptocurrency company, by completing a refund form and submitting a $250 fee.

"This false page is an attempt to further defraud BitConnect investors,"Texas Securities Commissioner Travis J. Iles said.

Investors should not respond to the fraudulent notice, complete the form, or send any money to the imposters. Links on the page may contain malware.

Iles warns investors that the unknown entity that set up the false webpage is trying to defraud investors in an “advance fee” scam, in which individuals are asked to pay a fee up front before they receive any proceeds.

The notice, which is labeled “Bitconnect update,” spoofs the Texas State Securities Board’s webpage and falsely claims that the Agency has promised to refund 35% of a “participant’s investment” in BitConnect.

“The facts are these: The Securities Commissioner issued an Emergency Cease and Desist Order against BitConnect on Jan. 4, 2018. The Order has since become final and remains in full force and effect because BitConnect failed to timely request a hearing to attempt to modify or vacate the Order.”

The Order does not provide for the payment of restitution to BitConnect investors.

For additional information, please contact the Enforcement Division at