Satish Kumbhani, the founder of the distinguished crypto exchange, has been booked for tricking investors worldwide and duping them $2.4 billion. As per the Department Of Justice, DOJ, a federal grand jury based in San Diego accused Kumbhani of ranging the Ponzi Policy. He was charged against the promises he made to the investors of generating considerable gains and assured returns under the program called Lending Program. The accusation alleges Kumbhani used the budgets from new investors to return the old investors until unexpectedly closing the program. Overall, Kumbhani and his co-conspirators attained around $2.4 billion from investors.
The DOJ further asserted that Kumbhani and his co-conspirators falsified market demand for BCC through market manipulation. The resultant involvements were allegedly covert and transferred through BitConnect’s assortment of digital currency wallets and several worldwide based digital currency exchanges. In 2017, BitConnect, BCC, jotted down a high of $463.31 in trading rate, which as per DOJ surpassed a peak market capitalization of $3.4 billion. But, the prices soon faced a collapse within a few months bringing huge losses to investors.
The accusation also declares that Kumbhani evaded U.S. restrictions by ceasing to register with the Financial Crimes Enforcement Network (FinCEN) The case is investigated by the FBI Cleveland Field Office and IRS Criminal Investigation. If found guilty, Kumbhani will be subject to a penalty of 70 years in jail. Moreover, the DOJ suggests all BitConnect investors enrol as potential victims. A new class-action lawsuit alleged that SafeMoon and its subsidiaries mimicked real-life Ponzi policy by cheating investors to purchase SafeMoon tokens in exchange for unrealistic gains.
Have a look at this- CryptoCurrency Fraud
