Indian Police Want Bitconnect Founder for Swindling Crypto Investors
Founder Satish Kumbhani Wanted
The Indian authorities are searching for the developer of Bitconnect, one of the most infamous dubious cryptocurrency investment schemes, in Pune, Maharashtra after the United States accused him of misleading investors.
Upon receiving a local attorney's FIR on Tuesday, the Pune Police booked the founder Satish Kumbhani and opened an investigation into his multi-million dollar cryptocurrency fraud. The scam also involved six other participants. In the FIR, the attorney claimed that he had been duped out of about 220 Bitcoins.
The Indian police are now searching for the culprits, but no one has been taken into custody. In addition, they are investigating whether the same individuals have taken advantage of more investors.
Bitconnect Loan Scheme And Kumbhani Misled Investors
The Federal Bureau of Investigation (FBI) is already looking into the Indian national. In February, the US charged Kumbhani for his founding role in the deceptive cryptocurrency scam. The US US Department of Justice (DOJ) labeled Bitconnect as a "global Ponzi scam" and stated,
"Bitcoin is an alleged fraudulent cryptocurrency investment platform that reached a peak market capitalization of $3.4 billion."
Kumbhani, 36, of Hemal, India, "misled investors," according to the Justice Department, about Bitconnect's loan scheme. The lending scam allegedly made massive profits and regular interests by exploiting the funds given by the investors to trade on the volatile crypto trading markets by employing proprietary technology, such as the "Bitconnect Trading Bot" and "Volatility Software." The official stated,
"Bitconnect operated as a Ponzi scheme by paying earlier Bitconnect investors with money from later investors."