- BitConnect founder Satish Kumbhani has been charged with defrauding investors through the scheme
- BitConnect took in over $2 billion in user funds between 2016 and 2018 but collapsed in 2018
- It was revealed to have been a huge Ponzi scheme and charges are finally coming
The founder of BitConnect, one of the most famous cryptocurrency scams of all time, could finally face justice after the Securities and Exchange Commission (SEC) filed charges against him over the $2 billion Ponzi scheme. Satish Kumbhani, who started BitConnect in 2016, oversaw an empire that reached its peak during the bull market in 2017 before collapsing in early 2018, losing the life savings of some individuals. BitConnect’s top earner from referrals was also charged by the SEC as the ramifications of the scam continue to spill out. The only problem with the charges against Kumbhani is that they can’t find him.
BitConnect Promised 40% Gains Per Month
The SEC’s charges against Kumbhani revolve around the way he promoted BitConnect as a lending platform that supposedly used a “volatility software trading bot” to generate returns of up to 40% per month. In reality, BitConnect was a simple Ponzi scheme that used new customers’ money to pay out withdrawal requests.
Promoters were brought on board in order to hype the project, with many such as Carlos Matos, Craig Grant, and Trevon James becoming memes within the cryptocurrency world as the value of the BitConnect token rocketed in late 2017.
Catch Me If You Can
The curtain came down on BitConnect in early 2018 after it had taken over $2 billion in users’ money, since when the American authorities have been picking off high profile individuals connected to it. Several big promoters were charged by the SEC in May with four pleading guilty, but as the creator of BitConnect, Kumbhani will be the prize most sought after by the SEC. It could be easier said than done to catch him however, with his whereabouts in India unknown.