Satish Kumbhani, founder of the infamous scam project BitConnect, has been charged with $2.4 billion in “scamming global investors” through a “Lending Program.”
followThe Department of Justice (DOJ) said a federal grand jury in San Diego charged Satish Kumbhani, stating that “BitConnect operated a fraudulent scheme. By paying BitConnect investors with money coming from new investors, in total, Kumbhani and his accomplices received approximately $2.4 billion from investors.”
Back in 2017, in the midst of a wave of popularity back then, BitConnect (BCC) hit a record $463.31 and a market cap of $3.4 billion. The price soon fell in a matter of months. causing huge losses to investors
Kumbhani, who lives in Gujarat india allegedly promise to investors that The lawsuit claims that Kumbhani used funds from new investors to pay old investors until the project was abruptly closed.
The DOJ further stated that Kumbhani and his accomplices pretended there was a market demand for the BCC through market manipulation.
The indictment also alleges that Kumbhani evaded US regulations. without registering with the Financial Crimes Enforcement Network (FinCEN) as required under the Bank Secrecy Act.
Overall, “Kumbhani has been charged with conspiracy to defraud, conspiracy to manipulate commodity prices, operate unauthorized money transmitting business, and conspiracy to launder international money.”
The case is being investigated by the FBI Cleveland Field Office and the IRS Criminal Investigation (CI), where if convicted on all counts, Kumbhani faces up to 70 years in prison. myself as a victim
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