In the United States, the founder of the $3.4 billion crypto Ponzi scheme Bitconnect has been charged. The US Department of Justice stated, “If convicted of all counts, he faces a possible total punishment of 70 years in prison.”
The founder of Bitconnect could face a sentence of 70 years in prison
The founder of the global crypto fraud scheme Bitconnect has been charged, according to the US Department of Justice.
“Bitconnect is an allegedly fraudulent bitcoin investment platform with a market valuation of $3.4 billion,” according to the DOJ.
Satishkumar Kurjibhai Kumbhani, an Indian citizen and resident, was charged with various offenses by a federal grand jury today for his alleged role in a major criminal conspiracy involving the cryptocurrency startup he established, Bitconnect.
According to the law department, the 36-year-old from Hemal, India, misled investors by claiming that the scheme’s “Lending Program” could “produce huge profits and assured returns” by employing “Bitconnect Trading Bot” and “Volatility Software.”
The Department of Justice, on the other hand, stated:
Bitconnect was a Ponzi scheme that paid out money to early Bitconnect investors with money from later Bitconnect investors. Kumbhani and his associates were able to raise $2.4 billion in total from investors.
The indictment also claims that after nearly a year, Kumbhani unexpectedly shut down the Lending Program. The DOJ claimed that he then “ordered his network of promoters to fraudulently manipulate and push up the price of BitConnect’s digital currency, a commodity known as Bitconnect Coin (BCC).”
Also Read: Indian Founder of BitConnect Charged by DOJ For Crypto Ponzi Scheme Worth $2.4B
According to the Justice Department, “Kumbhani is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities price manipulation, operation of an unregistered money transmitting business, and conspiracy to engage international money laundering.”
He faces a maximum sentence of 70 years in jail if convicted on all counts.
The Justice Department stated in November of last year that it was selling cryptocurrency confiscated from the Bitconnect operation for $56 million.
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