The founding father of the $3.4 billion crypto Ponzi draw Bitconnect has been charged in the United States. “If convicted of all counts, he faces a most entire penalty of 70 years in jail,” said the U.S. Department of Justice.

Bitconnect’s Founder May perhaps per chance Accelerate to Penitentiary for 70 Years

The U.S. Department of Justice (DOJ) introduced Friday that the founding father of the worldwide crypto fraud draw Bitconnect has been charged.

“Bitconnect is an alleged faux cryptocurrency investment platform that reached a first-rate market capitalization of $3.4 billion,” the DOJ described, adding:

A federal extensive jury returned an indictment this day charging Satishkumar Kurjibhai Kumbhani, a citizen and resident of India, with more than one crimes for his alleged role in a big felony conspiracy absorbing the cryptocurrency company he founded, Bitconnect.

The 36-one year-aged from Hemal, India, misled investors that the draw’s “Lending Program” became in a job to “generate tall profits and assured returns” the consume of “Bitconnect Trading Bot” and “Volatility Intention,” the justice department detailed.

However, the DOJ eminent:

Bitconnect operated as a Ponzi draw by paying earlier Bitconnect investors with money from later investors. In entire, Kumbhani and his co-conspirators obtained roughly $2.4 billion from investors.

The indictment further alleges that Kumbhani with out warning shut down the Lending Program after about one one year. He then “directed his community of promoters to fraudulently manipulate and prop up the price of BitConnect’s digital foreign money, a commodity identified as Bitconnect Coin (BCC),” the DOJ explained.

“Kumbhani is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodity model manipulation, operation of an unlicensed money transmitting enterprise, and conspiracy to commit global money laundering,” the Justice Department described, adding:

If convicted of all counts, he faces a most entire penalty of 70 years in jail.

In November final one year, the Justice Department introduced that it became promoting cryptocurrency price $56 million seized from the Bitconnect draw.

Tags in this story

BitConnect, bitconnect founder, bitconnect indicted, Crypto Fraud, Crypto Fraud Plot, crypto ponzi draw, crypto scam, cryptocurrency fraud, cryptocurrency Ponzi draw, DOJ, lending program

What slay you think concerning the DOJ charging Bitconnect’s founder? Let us know in the feedback allotment under.

Kevin Helms

A pupil of Austrian Economics, Kevin came upon Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin security, launch-source systems, community outcomes and the intersection between economics and cryptography.

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