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

The laminitis of the $3.4 cardinal crypto Ponzi strategy Bitconnect has been charged successful the United States. “If convicted of each counts, helium faces a maximum full punishment of 70 years successful prison,” said the U.S. Department of Justice.

Bitconnect’s Founder Could Go to Prison for 70 Years

The U.S. Department of Justice (DOJ) announced Friday that the laminitis of the planetary crypto fraud strategy Bitconnect has been charged.

“Bitconnect is an alleged fraudulent cryptocurrency concern level that reached a highest marketplace capitalization of $3.4 billion,” the DOJ described, adding:

A national expansive assemblage returned an indictment contiguous charging Satishkumar Kurjibhai Kumbhani, a national and nonmigratory of India, with aggregate crimes for his alleged relation successful a monolithic transgression conspiracy involving the cryptocurrency institution helium founded, Bitconnect.

The 36-year-old from Hemal, India, misled investors that the scheme’s “Lending Program” was capable to “generate important profits and guaranteed returns” utilizing “Bitconnect Trading Bot” and “Volatility Software,” the justness section detailed.

However, the DOJ noted:

Bitconnect operated arsenic a Ponzi strategy by paying earlier Bitconnect investors with wealth from aboriginal investors. In total, Kumbhani and his co-conspirators obtained astir $2.4 cardinal from investors.

The indictment further alleges that Kumbhani abruptly unopen down the Lending Program aft astir 1 year. He past “directed his web of promoters to fraudulently manipulate and prop up the terms of BitConnect’s integer currency, a commodity known arsenic Bitconnect Coin (BCC),” the DOJ explained.

“Kumbhani is charged with conspiracy to perpetrate ligament fraud, ligament fraud, conspiracy to perpetrate commodity terms manipulation, cognition of an unlicensed wealth transmitting business, and conspiracy to perpetrate planetary wealth laundering,” the Justice Department described, adding:

If convicted of each counts, helium faces a maximum full punishment of 70 years successful prison.

In November past year, the Justice Department announced that it was selling cryptocurrency worthy $56 cardinal seized from the Bitconnect scheme.

What bash you deliberation astir the DOJ charging Bitconnect’s founder? Let america cognize successful the comments conception below.

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