How to do your BitConnect taxes with Koinly
One of the most infamous scams in the crypto market - Bitconnect was an open-source cryptocurrency that promised high yields... from other investors - so in effect a kind of Ponzi scheme. If you have losses you still need to track and offset from Bitconnect, Koinly can help.
To get started, simply connect Koinly to the BitConnect blockchain via your public address. Once connected, Koinly imports all your trades automatically. Next, Koinly calculates all your gains, losses, income, and expenses with easy-to-spot totals ready for your tax return. At tax time, simply download the Koinly tax report for your country and you’re good to file!
Follow these steps to sync your BitConnect (BCC) data automatically to Koinly:
- Open your BitConnect (BCC) wallet app
- Locate and copy your public address or key
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find BitConnect (BCC) in the list
- Select API > Paste the public address/key you copied above in the appropriate box
- Hit Import and wait for Koinly to sync your data. This can take a few minutes
- Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
- Go to the Tax Reports page to view your tax liability!
How to find your BitConnect public address
You can find your public address in the wallet you used to interact with BitConnect. We have instructions on how to do this for a variety of popular wallets on our integration pages.
Please note: you’ll need to add your public address from every wallet you used to interact with BitConnect in order for Koinly to calculate your crypto taxes correctly.
Your frequently asked questions
What happened to BitConnect?
BitConnect (BCC) was a high-yield investment program, marketed as an open-source cryptocurrency, that was eventually exposed to be a large scale Ponzi scheme. The scheme began in 2016, claiming users could deposit Bitcoin into the platform and earn 1% compound interest daily in BCC. Following notices and cease and desist orders from governments and financial authorities around the world, the platform shut down in January 2018. BCC prices crashed up 92% following the closure, and while BitConnect announced it was refund users, this process is still on-going to this day. Several high profile figures associated with BitConnect have been prosecuted, while the founder of BitConnect has been indicted but not yet arrested or convicted.
Did people get money back from BitConnect?
In January 2023, the US District Court for the Southern District of California announced a group of BitConnect fraud victims will see some respite, after a court ordered they receive a share in a $17 million restitution. While this is good news for those receiving refunds, given the SEC estimates that BitConnect defrauded US investors of an approximate $2 billion, it is a relatively small restorative measure for the scale of the scam.
Was anyone sent to jail for BitConnect?
Glen Arcaro, the lead promoter for BitConnect in the US, pleaded guilty to criminal charges including criminal forfeiture and conspiracy to commit wire fraud. Founder, Satish Kumbhani, has also been indicted by the US Department of Justice including money laundering and fraud. He is being sought by the Indian police as well, but his whereabouts are currently unknown.
How much did BitConnect steal?
The SEC estimates that BitConnect defrauded US investors of approximately $2.4 billion in their indictment against founder Satish Kumbhani.
Does BitConnect coin still exist?
No. The BitConnect platform shut down in 2018, and BCC is not available to trade on any legitimate crypto exchanges.