US Charges Indian Citizen in $3.4 Billion Crypto Ponzi Scheme Bitconnect – Regulation Bitcoin News


The founding father of the $3.4 billion crypto Ponzi scheme Bitconnect has been charged in the US. “If convicted of all counts, he faces a most whole penalty of 70 years in jail,” stated the U.S. Division of Justice.

Bitconnect’s Founder May Go to Jail for 70 Years

The U.S. Division of Justice (DOJ) introduced Friday that the founding father of the worldwide crypto fraud scheme Bitconnect has been charged.

“Bitconnect is an alleged fraudulent cryptocurrency funding platform that reached a peak market capitalization of $3.4 billion,” the DOJ described, including:

A federal grand jury returned an indictment as we speak charging Satishkumar Kurjibhai Kumbhani, a citizen and resident of India, with a number of crimes for his alleged function in a large felony conspiracy involving the cryptocurrency firm he based, Bitconnect.

The 36-year-old from Hemal, India, misled traders that the scheme’s “Lending Program” was in a position to “generate substantial income and assured returns” utilizing “Bitconnect Buying and selling Bot” and “Volatility Software program,” the justice division detailed.

Nevertheless, the DOJ famous:

Bitconnect operated as a Ponzi scheme by paying earlier Bitconnect traders with cash from later traders. In whole, Kumbhani and his co-conspirators obtained roughly $2.4 billion from traders.

The indictment additional alleges that Kumbhani abruptly shut down the Lending Program after about one yr. He then “directed his community of promoters to fraudulently manipulate and prop up the value of BitConnect’s digital foreign money, a commodity often known as Bitconnect Coin (BCC),” the DOJ defined.

“Kumbhani is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodity value manipulation, operation of an unlicensed cash transmitting enterprise, and conspiracy to commit worldwide cash laundering,” the Justice Division described, including:

If convicted of all counts, he faces a most whole penalty of 70 years in jail.

In November final yr, the Justice Division introduced that it was selling cryptocurrency price $56 million seized from the Bitconnect scheme.

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BitConnect, bitconnect founder, bitconnect indicted, Crypto Fraud, Crypto Fraud Scheme, crypto ponzi scheme, crypto scam, cryptocurrency fraud, cryptocurrency Ponzi scheme, DOJ, lending program

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Kevin Helms

A scholar of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source programs, community results and the intersection between economics and cryptography.

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