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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Alex DovbnyaThe 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.
Dan Burgin
Vladislav Sopov