Indian Police Search for Bitconnect Founder After the US Indicted Him for Defrauding Crypto Investors

Indian Police Search for Bitconnect Founder After the US Indicted Him for Defrauding Crypto Investors

The 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 U.S. authorities, the scheme reached a market capitalization of $3.4 billion at its peak. The founder and his co-conspirators allegedly obtained about $2.4 billion from investors. Bitconnect’s Founder Wanted by Indian Police

The founder of Bitconnect, one of the most famous fraudulent cryptocurrency investment schemes, is wanted by the Indian police in the city of Pune, Maharashtra, after the U.S. indicted him for defrauding investors.

The Pune Police launched a probe into the multi-crore crypto scheme and booked its founder, Satish Kumbhani, after a local lawyer lodged a first information report (FIR) on Tuesday. He also named six others involved in the scheme. The lawyer stated in the FIR that he was defrauded for close to 220 bitcoins.

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

Kumbhani, an Indian national, is already being investigated by the Federal Bureau of Investigation (FBI). The U.S. indicted him in February for his role as the founder of the fraudulent crypto scheme. Calling Bitconnect a “global Ponzi scheme,” the U.S. Department of Justice (DOJ) described: Bitconnect is an alleged fraudulent cryptocurrency investment platform that reached a peak market capitalization of $3.4 billion.

The Justice Department explained that Kumbhani, 36, of Hemal, India, “misled investors” about Bitconnect’s lending program. They claimed that it used proprietary technology, namely the “Bitconnect Trading Bot” and “Volatility Software” to “generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets.” The authority emphasized: Bitconnect operated as a Ponzi scheme by paying earlier Bitconnect investors with money from later investors.

“In total, Kumbhani and his co-conspirators obtained approximately $2.4 billion from investors,” the DOJ added. Tags in this story bitcoin bitconnect, BitConnect, bitconnect founder, bitconnect india, bitconnect scam, bitconnect scammers, indian crypto scam, indian police bitconnect, pune police, Satish Kumbhani, Satish Kumbhani bitconnect

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

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Korean Regulator Takes Action Against 16 Foreign Crypto Exchanges REGULATION | 6 hours ago South African Banking Regulator: "De-risking" Crypto Firms Potentially Creates "Opacity in Financial Conduct" REGULATION | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleKorean Regulator Takes Action Against 16 Foreign Crypto Exchanges Next articleLatam Giant Mercado Libre Launches Mercadocoin in Brazil Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItTony Hawk"s Latest NFTs to Come With Signed Physical Skateboards

Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs ... read more.Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design