DOJ indicts BitConnect’s Indian founder for $2.4B crypto Ponzi map

The founder of the bad crypto alternate BitConnect, Satish Kumbhani, has been charged for allegedly misleading traders globally and defrauding them of $2.4 billion in the plan.

In response to the Division of Justice (DOJ), a San Diego-essentially based federal mountainous jury particularly charged Kumbhani for orchestrating the alleged Ponzi map by arrangement of BitConnect’s “Lending Program”:

“BitConnect operated as a Ponzi map by paying earlier BitConnect traders with money from later traders. In total, Kumbhani and his co-conspirators obtained roughly $2.4 billion from traders.”

BitConnect (BCC) price historic previous. Source: CoinMarketCap

Wait on in 2017 amid the hype, BitConnect (BCC) recorded an all-time excessive of $463.31 in shopping and selling price, which essentially based on the DOJ reached a height market capitalization of $3.4 billion. On the opposite hand, as evidenced by the graph above, the prices soon collapsed within a few months inflicting big losses to traders. 

Kumbhani, who resides in Gujarat, India, allegedly promised traders “ to generate substantial profits and guaranteed returns” below the BitConnect’s “Lending Program.” The indictment alleges Kumbhani weak the funds from recent traders to partially pay help the veteran traders except without warning shutting down the program — working a textbook Ponzi map.

The DOJ extra talked about that Kumbhani and his co-conspirators faked market seek data from for BCC thru market manipulation. The resultant investments were allegedly concealed and transferred by arrangement of “BitConnect’s cluster of cryptocurrency wallets and varied internationally-essentially based cryptocurrency exchanges.”

Supporting DOJ’s allegations, help in Sept. 2021, primitive BitConnect promoter Glenn Arcaro pled guilty to fraud prices linked to his role in the now-defunct crypto alternate and lending platform.

The indictment additionally alleges that Kumbhani avoided U.S. guidelines by failing to register with the Monetary Crimes Enforcement Community (FinCEN), as required below the Bank Secrecy Act.

All in all, “Kumbhani is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodity price manipulation, operation of an unlicensed money transmitting substitute, and conspiracy to commit world money laundering,” acknowledged the DOJ press liberate.

The case is in the intervening time being investigated by the FBI Cleveland Self-discipline Place of work and IRS Prison Investigation (CI). If convicted of all counts, Kumbhani shall be discipline to a most total penalty of 70 years in detention center. In addition, the DOJ recommends all BitConnect traders register themselves as doable victims.

Connected: SafeMoon pump-and-dump lawsuit targets Jake Paul, Soulja Boy and others

On Feb. 20, a recent class-action lawsuit demanded a jury trial in opposition to customary celebrities and influencers for their alleged participation in a classic pump-and-dump map regarding SafeMoon tokens.

As Cointelegraph reported, the lawsuit alleged that SafeMoon and its subsidiaries mimicked accurate-life Ponzi schemes by misleading traders to seize SafeMoon tokens below the pretext of unrealistic profits.

Rep your fighter #SafeMoon #BitConnectttttt

— W◎◎F of Wall Avenue | CwooFA (@WoofManCapital) April 21, 2021

Drafted by plaintiffs Bill Merewhuader, Christopher Polite and Tim Viane, the lawsuit looks to signify and compensate all participants who bought SafeMoon tokens since March 8, 2021, and were victims of the alleged rug pull strive.

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