BitConnect, an England-based cryptocurrency startup, has announced that it is closing its lending and exchange platform, with immediate effect.

The announcement follows the Emergency Cease and Desist Order recently issued by the Texas Securities Commissioner against the company.

In its official release, BitConnect said:

“We are closing the lending operation immediately with the release of all outstanding loans. With release of your entire active loan in the lending wallet we are transferring all your lending wallet balance to your BitConnect wallet balance at 363.62 USD. This rate has been calculated based on last 15 days averages of the closing price registered on coinmarketcap.com. You are free to withdraw your BitConnect coin currently in QT wallets that was used for staking as well.

“We are also closing BCC exchange platform in 5 days. In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes.”

BitConnect said that it also received cease and desist order from the North Carolina Secretary of State Securities Division. It attributed its closure to bad press, cease and desist letters and a number of DDoS attacks on its platform.

However, the company said that it will continue to support BitConnect coin, which will now be listed on other exchanges offering more options for trading.

Closing the lending and exchange platform doesn’t mean that we will stop supporting BitConnect coin. Closing the lending platform will allow Bitconnect to be listed on outside exchanges giving more options for trading.

Commenting on its initial coin offering (ICO) plans, BitConnect said:

“BitConnect X ICO is still functional and we are building an exchange platform on the BitConnect X website. With BitConnect X operating as an exchange platform, BitConnect Coin (BCC) will be listed there.”