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.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Bitcoin transactions represent the movement of bitcoins from senders to receivers, digitally signed using cryptography…
Visa's new metric finds that over 90% of stablecoin transaction volumes lack genuine user engagement.
Data from Coinglass has unveiled staggering figures of liquidated contracts, shaking both seasoned investors and…
Over 84% of the staked Sui token supply is controlled by the founders, raising centralization…
The Coinbase class action lawsuit, echoing a previous case against the exchange, accuses it of…
Tether's CEO, Paolo Ardoino, highlights discrepancies in the Bitfinex data breach, revealing that only a…
This website uses cookies.