fraud
Why government can catch silkroad but not bitconnect?
<p>I think part of the answer should be in computer science.</p>

<p>But part of this is probably law.</p>

<p>Bitconnect is a ponzy that recently collapse.</p>

<p>The thing is it's not on dark web.</p>

<p>Yes the people are anonymous.</p>

<p>But there have to be some people working on that website. Government can just subpoena the server.</p>

<p>Silkroad, however, is behind dark web. Very difficult.</p>

<p>What did bcc did to avoid law enforcement? Do they host their site at some bulletproof server? How do they remain anonymous without dark web? Why government can't just subpoena the host and got their names?</p>

<p>What I am thinking is the following. BCC is suspected of being a ponzy for a very long time. C'mon. Every single company like BCC is a ponzy. They offer fix return. They claim outrageous money machine (they call it volatility engine) that most likely don't exist. </p>

<p>BCC is not hosted on dark web. So there must be some servers that does it. Government can request image of the server like they did on silk road. Then it'll be obvious who access it, where the money go, etc. Then just seize the guy.</p>

<p>Update:
Now Bitconnect has collapse as expected
However, the website is there
<a href="https://bitconnect.co/" rel="nofollow noreferrer">https://bitconnect.co/</a></p>

<p>I think a judge has ruled against them.</p>

<p><a href="https://www.coindesk.com/us-court-freezes-bitconnect-assets-as-lawsuits-mount/" rel="nofollow noreferrer">https://www.coindesk.com/us-court-freezes-bitconnect-assets-as-lawsuits-mount/</a></p>

<p>So I wonder why there was no progress?</p>

<p>My point is, we all know, this is is fraud. And we know they try to do this anonymously. However, their server is there in plain sight. So I wonder why the cops couldn't track the operators?</p>

<p>The answer is more law than it is computer science.</p>

<p>You can't tell if a Ponzi scheme is a Ponzi scheme by looking only at individual transactions in the scheme. The individual transactions involve buying something, selling it, entering into loan or investment contracts, and the like. What makes a Ponzi scheme a Ponzi scheme is that the promoters make their money primarily from the investors and individuals acting as sub-promoters in the scheme and not from end users of whatever is being nominally promoted by the Ponzi scheme. Only by analyzing the finances of a purported Ponzi scheme can you determine that it is indeed one. The individual transaction documents and transactions can be facially legal, but still be an illegal Ponzi scheme if the economics of the scheme as a whole are illegal. </p>

<p>(Similarly, it is impossible to tell if an anti-trust violation is illegal simply by looking an individual transactions carried out in furtherance of the anti-trust violation. You can't tell if goods are being sold below cost to damage competition, for example, just from a single sale of goods transaction in isolation.)</p>

<p>In contrast, many of the transaction at Silkroad were illegal in isolation - buying or selling controlled substances or child pornography or whatever else was forbidden to sell to the counterparty in the transaction. If you can just look at a single transaction and determine that it violates the law, it is much easier to develop the probable cause needed to do a fuller investigation or to make arrests.</p>
