Indian Police Search for Bitconnect Founder After US Indicts Him for Defrauding Crypto Investors – Bitcoin Regulation News

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Indian police have launched an investigation into Bitconnect and booked its founder after a bitcoin investor reported being defrauded by the global crypto “Ponzi scheme”. According to US authorities, the scheme reached a market capitalization of $3.4 billion at its peak. The founder and his co-conspirators allegedly secured around $2.4 billion from investors.

Bitconnect founder wanted by Indian police

The founder of Bitconnect, one of the most notorious fraudulent cryptocurrency investment schemes, is wanted by Indian police in the city of Pune, Maharashtra, after the US charged him with defrauding investors .

Pune Police have launched an investigation into the multi-crore crypto scheme and booked its founder, Satish Kumbhani, after a local lawyer filed a first information report (FIR) on Tuesday. He also named six other people involved in the scheme. The lawyer said in the FIR that he was defrauded of almost 220 bitcoins.

Indian police are currently looking for the accused but no arrests have been made. They are also investigating whether the same people defrauded more investors.

Kumbhani, an Indian national, is already under investigation by the Federal Bureau of Investigation (FBI). The United States indicted him in February for his role as the founder of the fraudulent cryptosystem. Calling Bitconnect a “global Ponzi scheme,” the US Department of Justice (DOJ) described:

Bitconnect is an alleged fraudulent cryptocurrency investment platform that has reached a peak market capitalization of $3.4 billion.

The Department of Justice said Kumbhani, 36, from Hemal, India, “misled investors” about Bitconnect’s loan scheme. They claimed that it uses proprietary technology, namely the ‘Bitconnect Trading Bot’ and ‘Volatility Software’ to ‘generate substantial profits and guaranteed returns by using investors’ money to trade the volatility of global markets. ‘cryptocurrency exchange’. The authority pointed out:

Bitconnect operated as a Ponzi scheme by paying early Bitconnect investors with later investors’ money.

“In total, Kumbhani and his co-conspirators secured approximately $2.4 billion from investors,” the DOJ added.

Keywords in this story

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What do you think of the Indian police searching for the founder of Bitconnect “Ponzi scheme”? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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