A U.S. grand jury indicted Satish Kumbhani, the founder of BitConnect, orchestrating a fraud scheme that siphoned approximately $2.4 billion from investors. (Read More)

BitConnect’s Indian founder got charged in a $2.4 billion crypto scheme according to the reports from the federal grand jury in San Diego show so let’s read more today in our latest cryptocurrency news. The broad indictment claims that he cheated investors out of $2.4 billion in a Ponzi scam. The prosecutors said that the […]

The founder of the $3.4 billion crypto Ponzi scheme Bitconnect has been charged in the United States. “If convicted of all counts, he faces a maximum total penalty of 70 years in prison,” said the U.S. Department of Justice. Bitconnect’s Founder Could Go to Prison for 70 Years The U.S. Department of Justice […]

The U.S. Department of Justice announced its indictment against Satish Kumbhani, the founder of defunct cryptocurrency platform BitConnect on charges of ‘orchestrating a global Ponzi scheme’ worth $2.4 billion, believed to be the largest cryptocurrency fraud ever. US Justice Department Indicts BitConnect Founder In an official press release, the Justice Department said that Satish Kumbhani had been charged with conspiracy to commit wire fraud, wire fraud, commodity price manipulation, operation of an unlicensed money transmitting business, and committing international money laundering. All the charges have been associated with the operation of BitConnect crypto platform. The service was sold as a lending program that ultimately proved to be a pyramid business of global dimensions, ranking 20th in the list of cryptocurrencies with the most market capitalization. “This indictment alleges a massive cryptocurrency scheme that defrauded investors of more than $2 billion. The U.S. Attorney’s Office and our law enforcement partners are committed to pursuing justice for victims of cryptocurrency fraud,” U.S. Attorney Randy Grossman said in a statement. Crypto Frauds Draw Scrutiny from Regulators The U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DoJ) has been actively hunting down cryptocurrency-related cases recently. Just this week, BitMEX co-founders Delo and Hayes pleaded guilty to violating the U.S Bank Secrecy Act. Under the terms of their plea agreements, the co-founders have agreed to pay a $10 million criminal fine ‘representing pecuniary gain derived from the offense.; Similarly, crypto lending firm BlockFi also paid a $100 million penalty in an SEC settlement this month.

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Bitconnect closed in 2018, but the US authorities are not done with its promoters and now they are charging one of its cofounders

Satish Kumbhani remains at large, according to the Department of Justice.

A federal grand jury has indicted BitConnect founder Satish Kumbhani with allegedly defrauding $2.4 billion through the crypto Ponzi scheme.

The post BitConnect founder indicted for alleged $2.4 billion Ponzi scheme appeared first on The Block.