HomeBitcoin NewsBitConnect Founder Accused Of Ponzi Scheme Has Vanished

BitConnect Founder Accused Of Ponzi Scheme Has Vanished


Satish Kumbhani, the founding father of BitConnect, has gone lacking every week after being charged in a $2.4 billion Ponzi scheme that allegedly deceived buyers in america.

The US Division of Justice (DoJ) indicted Kumbhani, an Indian citizen, with legal expenses final week. In September 2021, the Securities and Change Fee (SEC) filed a separate lawsuit in opposition to Kumbhani, alleging that he fraudulently obtained greater than $2 billion for BitConnect. The difficulty presently is that Kumbhani is not any the place to be discovered.


Officers acknowledged in a authorized filing on Monday that Kumbhani has almost certainly left India and that his whereabouts are unsure. This comes after the SEC discovered in October 2021 that Kumbhani had seemingly moved from India to an unfamiliar deal with out of the country.

Extension plea in BitConnect’s founder lacking case

Richard G. Primoff, senior trial counsel within the submitting has requested an extension till Could 30 from U.S. District Decide John Koeltl.

Primoff additionally acknowledged that the Fee has been involved with the nation’s banking regulatory companies since November in an effort to trace out Kumbhani’s deal with. At the moment, nevertheless, Kumbhani’s whereabouts are unclear, and the Fee is unable to say when, if ever, its makes an attempt to determine him shall be profitable. He additional acknowledged,

“The Fee didn’t know the whereabouts of Kumbhani, an Indian citizen, on the time it filed this motion, and BitConnect is an unincorporated entity the Fee should serve by means of its supervisor, Kumbhani.”

BitConnect, which was based in 2016, was one of many largest and hottest initiatives within the mid-2017 preliminary coin providing (ICO) craze, elevating billions of {dollars} from worldwide buyers for a protocol that allegedly paid out 10% in curiosity earnings by way of its BCC token to buyers, with customers who “referred” different buyers receiving much more advantages.

Nonetheless, platform directors closed BitConnect’s incomes platform on January 16, 2018, when the corporate’s product got here underneath rising scrutiny from legislators and buyers. Within the days following the platform’s collapse, BCC costs plunged to beneath $1 from a previous peak of about $500.

Such circumstances sparked a authorized wrestle in america to convey BitConnect’s founders to justice, with Kumbhani and American citizen Glenn Arcaro on the coronary heart of the plan. On 1 September 2021, Arcaro pleaded responsible to legal counts, comprising conspiracy to commit wire fraud and legal forfeiture.


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