SEC unable to encounter BitConnect founder convicted in $2.4B fraud case

BitConnect founder is being sued for illegally raising funds and defrauding American investors of over $2 billion.

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SEC unable to locate BitConnect founder convicted in $2.4B fraud case

Indicted by the United States Department of Justice in a $2.4 billion Ponzi scheme, BitConnect founder Satish Kumbhani stays untraced following conviction.

In a court submitting on Monday, the Securities and Alternate Commission said that the whereabouts of Kumbhani stays unknown. The SEC eminent that Kumbhani’s finest known region was in his native nation India, however has remained untraced ever for the reason that promoter for his BitConnect Ponzi scheme was charged by the SEC for defrauding American investors of over $2 billion.

SEC in its submitting eminent that the convicted founder has most doubtlessly fled to a foreign nation and “Kumbhani’s region stays unknown, and the Commission stays unable to instruct when its efforts to encounter him will most doubtless be winning, if the least bit.” The founder is charged with wire fraud, working an unlicensed money transmitting exchange, and three conspiracies: committing wire fraud; commodity mark manipulation; and world money laundering

Associated: SEC prices 5 for illegally promoting $2 billion Bitconnect Ponzi scheme

The BitConnect saga dates assist to ICO-generation and was among the most highlighted and talked about projects on the time. Basically based in 2016, the crypto project grew to change into a world sensation by mid-2017 because it raised billions of dollars from world investors. The project promised a lending program according to proprietary “trading bot” and “volatility instrument” that will offer 10% incomes to investors by the utilization of BCC token.

The DOJ charged Kumbhani for running a Ponzi scheme by the utilization of BitConnect’s lending program where the project managed to siphon off $2.4 billion from investors. Bitconnect’s native token BCC recorded an all-time-excessive trading mark of $463.31 on the stop of the market frenzy in December 2017 reaching a market cap of $3.4 billion. 

The founders rug pulled the project by January 2018, crashing the token mark to attain zero and causing huge losses to investors.

BitConnect (BCC) mark history. Provide: CoinMarketCap

The DOJ additionally accused Kumbhani of developing counterfeit market request for BCC to lure extra unsuspecting investors. The project love many others within the ICO generation became out to be a huge pyramid scheme where the creators stale early funds to repay weak investors and later ran away after collecting billions according to hype and ICO craze. . Quite loads of promoters of the project across Australia and the U.S. absorb already been convicted and facing jail.

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