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BitConnect Founder Charged with Defrauding Investors

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Sun, 27/02/2022 - 16:43
BitConnect Founder Charged with Defrauding Investors
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Satish Kumbhani, the founder of the Ponzi scheme BitConnect, has been charged with orchestrating a $2.4 billion, according to a press release published by the U.S. Department of Justice

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According to prosecutors, BitConnect’s lending program, which was supposed to use proprietary technologies for generating guaranteed returns, was shut down after operating for about one year.

Kumbhani relied on a group of promoters in order to give the cryptocurrency a veneer of legitimacy and artificially prop up its value.

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After being charged on multiple counts of wire fraud, conspiracy to commit money laundering and conspiracy to manipulate commodity prices, Kumbhani is facing a maximum prison sentence of 70 years.

The U.S. Securities and Exchange Commission filed a lawsuit against BitConnect as well as Kumbhani and the leading U.S. promoter of the high-profile fraud back in September 2021.  

BitConnect gained prominence in 2017, but the native BCC token suffered a massive crash in early 2018 after it transpired that the whole thing was a Ponzi scam.

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