Top BitConnect investor Craig Grant uploaded a YouTube video a few hours ago, in which he confirms an SEC investigation into the company is underway.
[1:26] Trevon (James) … says that the SEC subpoenaed him like a month ago for all his bitcoin addresses. He sent them everything.
Then they called him like a week ago to say come talk to them in September.
He was supposed to talk to them in August but they postponed it till September.
Other than the occasional shilling of the Steem cryptocurrency, James has been maintaining a relatively low profile on YouTube.
I’m painfully aware Craig Grant is not a lawyer, so I can’t confirm the accuracy of the legal terms he’s used.
Of note is that the SEC wouldn’t be able to issue a subpoena unless they’ve filed a complaint. There is the possibility of pre-litigation discovery but then we’re pushing the boundaries of my own legal knowledge.
At the time of publication nothing is showing up on Pacer, meaning if the SEC has filed a lawsuit against BitConnect and top investors, it’s still under seal.
Personally I think the SEC are still investigating the case and collective evidence.
An actual lawsuit (federal complaint) will likely be filed later this year or in the first half of 2019 (note this is a prediction on my part based on what is currently known).
In addition to an SEC investigation into BitConnect, an FBI investigation into the company was confirmed back in March.
The current status of the FBI’s BitConnect investigation is unknown.