US Charges Indian Citizen in $3.4 Billion Crypto Ponzi Scheme Bitconnect

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

Bitconnect’s Founder Could Go to Prison for 70 Years

The U.S. Department 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 at the moment charging Satishkumar Kurjibhai Kumbhani, a citizen and resident of India, with a number of crimes for his alleged position in an enormous legal 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 income and assured returns” utilizing “Bitconnect Trading Bot” and “Volatility Software,” the justice division detailed.

However, 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 12 months. He then “directed his community of promoters to fraudulently manipulate and prop up the value of BitConnect’s digital forex, a commodity often called Bitconnect Coin (BCC),” the DOJ defined.

“Kumbhani is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodity worth manipulation, operation of an unlicensed cash transmitting enterprise, and conspiracy to commit worldwide cash laundering,” the Justice Department described, including:

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

In November final 12 months, the Justice Department introduced that it was selling cryptocurrency value $56 million seized from the Bitconnect scheme.

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