Home Business BitConnect Mastermind Indicted for $2.4 Billion Rip-off – However Authorities Can’t Discover...

BitConnect Mastermind Indicted for $2.4 Billion Rip-off – However Authorities Can’t Discover Him


Satish Kumbhani, the founding father of BitConnect, regarded as the largest crypto-related Ponzi scheme of all time, is nowhere to be discovered.

Kumbhani, an Indian citizen, was indicted final week for deceptive US traders about BitConnect’s purported “Lending Program.”

“As alleged within the indictment, nonetheless, BitConnect operated as a Ponzi scheme by paying earlier BitConnect traders with cash from later traders. In whole, Kumbhani and his co-conspirators obtained roughly $2.4 billion from traders,” the Division of Justice mentioned in a press release.

“As cryptocurrency beneficial properties reputation and attracts traders worldwide, alleged fraudsters like Kumbhani are using more and more complicated schemes to defraud traders, oftentimes stealing tens of millions of {dollars},” mentioned Particular Agent in Cost Ryan L. Korner of the IRS Prison Investigation’s (IRS-CI) Los Angeles Subject Workplace.

“Nevertheless, make no mistake, our company will proceed our lengthy custom of following the cash, whether or not bodily or digital, to reveal legal schemes and maintain the fraudsters accountable for his or her unlawful acts of trickery and deceit.”

If convicted of all counts, Kumbhani faces a most of 70 years in jail, however authorities are going to have to seek out him first. Attorneys for Kumbhani mentioned in a authorized submitting that the 34-year-old possible vanished from India, however his exact location is unknown.

“The Fee didn’t know the whereabouts of Kumbhani, an Indian citizen, on the time it filed this motion, and BitConnect is an unincorporated entity the Fee should serve via its supervisor, Kumbhani, pursuant to Rule 4(h)(1)(B) and Rule

In October 2021, the Fee discovered that Kumbhani has possible relocated from India to an unknown tackle in a distinct overseas nation. Since November, the Fee has been consulting with that nation’s monetary regulatory authorities in an try to find Kumbhani’s tackle. At current, nonetheless, Kumbhani’s location stays unknown, and the Fee stays unable to state when its efforts to find him will likely be profitable, if in any respect.”

BitConnect was one of many largest preliminary coin choices (ICO) of 2017, with its BCC token skyrocketing to just about $500 earlier than collapsing to underneath $1 in weeks when Kumbhani pulled the plug on the scheme.

American citizen Glen Arcaro additionally pleaded responsible for his involvement within the scheme in September of final 12 months, admitting that he earned at least $24 million from the BItConnect saga.

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