Indian police launched an investigation into BitConnect and prosecuted its founders after bitcoin investors reported fraudulent activity by a global cryptocurrency “Ponzi scheme.” At its peak, the scheme took him to a market capitalization of $3.4 billion, according to US officials. The founder and his co-conspirators are said to have made about $2.4 billion from investors.
Bitconnect founder wanted by Indian police
The founder of one of the most notorious fraudulent cryptocurrency investment schemes, Bitconnect, is wanted by Indian police in Pune city, Maharashtra after the US indicted him for defrauding investors.
Pune police have launched an investigation into a hefty crypto scheme and arrested its founder, Satish Kumbani, after a local lawyer filed an initial information report (FIR) on Tuesday. He also named six other people involved in the project. Lawyers say he was scammed of nearly 220 bitcoins at FIR.
Indian police are currently searching for a suspect, but no arrests have been made. They’re also investigating whether the same people are cheating more investors.
Kumbani, an Indian national, has already been investigated by the Federal Bureau of Investigation (FBI).America indicted to him in February for his role as the founder of a fraudulent crypto scheme. The U.S. Department of Justice (DOJ) calls Bitconnect a “global Ponzi scheme,” explaining:
Bitconnect is allegedly a fraudulent cryptocurrency investment platform with a peak market capitalization of $3.4 billion.
The Justice Department said Kumbani, 36, of Hemal, India, had “misled investors” about Bitconnect’s lending program. They use their proprietary technology namely ‘Bitconnect Trading Bot’ and ‘Volatility Software’ to ensure that ‘substantial profits and guarantees are made by using investors’ funds to trade on the volatility of the cryptocurrency exchange market. It will generate an estimated return,” he argued. The authorities stressed that:
Bitconnect operated as a Ponzi scheme by paying earlier Bitconnect investors money from later investors.
“In total, Kumbani and his co-conspirators made about $2.4 billion from investors,” DOJ added.
What do you think of the Indian police looking for the creators of the Bitconnect ‘Ponzi scheme’? Let us know in the comments section below.
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