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 america. “If convicted of all counts, he faces a most whole penalty of 70 years in jail,” mentioned 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 immediately charging Satishkumar Kurjibhai Kumbhani, a citizen and resident of India, with a number of crimes for his alleged position 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 capable of “generate substantial earnings 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 worth of BitConnect’s digital foreign money, a commodity referred to 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 promoting cryptocurrency value $56 million seized from the Bitconnect scheme.
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