India Wants Bitconnect Boss After Being Accused Of Fraud By The US

Indian police have opened an investigation into Bitconnect and arrested the founder after a Bitcoin investor reported being a victim of this global cryptocurrency “Ponzi scheme”.

The plan is to have a market capitalization of $3.4 billion at its peak, according to US officials. The founder and his alleged accomplices have collected about $2.4 billion from investors.

Bitconnect is one of the most notorious scam crypto investment schemes. The founder of the project is wanted by Indian police in the city of Pune, Maharashtra, after the United States charged him with defrauding investors.

Pune police have launched an investigation into a multi-billion dollar cryptocurrency scheme and named founder Satish Kumbhani after a local attorney filed a first information report (FIR) on Tuesday. He also named six other people involved in the scheme. The lawyer claimed in the FIR that he was scammed for nearly 220 Bitcoins.

Currently, Indian police are searching for the accused and have not been able to make an arrest, according to Indian Express.

Kumbhani, an Indian national, is currently under investigation by the US Federal Bureau of Investigation (FBI). The United States charged him in February as the founder of a fraudulent cryptocurrency scheme. Calling Bitconnect a “global Ponzi scheme,” the US Department of Justice (DOJ) describes it:

“A federal grand jury in San Diego returned an indictment today charging the founder of BitConnect with orchestrating a global Ponzi scheme. BitConnect is an alleged fraudulent cryptocurrency investment platform that reached a peak market capitalization of $3.4 billion.”

The US Department of Justice explained that Kumbhani, 36, of Hemal, India, “misled investors” about Bitconnect’s lending program. They claim to use proprietary technology “Bitconnect Trading Bot” and “Volatile Software” to generate substantial profits and guaranteed profits by using investors’ money to trade based on the volatility of trading markets.

Bitconnect is a Ponzi scheme with the trick of paying investors first with money from investors joining later. In total, Kumbhani and his co-conspirators earned about $2.4 billion from investors.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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