BitConnect Founder Charged Over $2.4 Billion Cryptocurrency Scam

United States, Texas, Dallas

Published 2 years ago

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BitConnect Founder Charged Over $2.4 Billion Cryptocurrency Scam

United States, Texas, Dallas,

Published 2 years ago

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The founder of the infamous BitConnect cryptocurrency exchange, Satish Kumbhani, has been accused of misleading investors around the world and defrauding them of $2.4 billion in the process.

According to the Department of Justice (DOJ), a federal grand jury based in San Diego specifically indicted Kumbhani for orchestrating the alleged Ponzi scheme through the BitConnect "Loan Program":

"BitConnect operated as a Ponzi scheme paying early BitConnect investors with money from later investors. In total, Kumbhani and his co-conspirators made approximately $2.4 billion from investors."

BitConnect (BCC) price history.

Source: CoinMarketCap Already in 2017, amidst the hype, BitConnect (BCC) posted an all-time high of $463.31 in trading price, which according to the DOJ reached a peak market capitalization of $3.4 billion. However, as the chart above demonstrates, prices soon crashed within a few months, causing investors massive losses.