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Indian Police Search for Bitconnect Founder After the US Indicted Him for Defrauding Crypto Investors – Regulation Bitcoin News

The Indian police have launched an investigation into Bitconnect and booked its founder after a bitcoin investor reported being defrauded by the world crypto “Ponzi scheme.” According to U.S. authorities, the scheme reached a market capitalization of $3.4 billion at its peak. The founder and his co-conspirators allegedly obtained about $2.4 billion from traders.

Bitconnect’s Founder Wanted by Indian Police

The founding father of Bitconnect, one in all the most well-known fraudulent cryptocurrency funding schemes, is needed by the Indian police in the metropolis of Pune, Maharashtra, after the U.S. indicted him for defrauding traders.

The Pune Police launched a probe into the multi-crore crypto scheme and booked its founder, Satish Kumbhani, after an area lawyer lodged a primary info report (FIR) on Tuesday. He additionally named six others concerned in the scheme. The lawyer said in the FIR that he was defrauded for near 220 bitcoins.

The Indian police are actually looking for the accused however no arrests have been made. They are additionally investigating whether or not the similar folks have defrauded extra traders.

Kumbhani, an Indian nationwide, is already being investigated by the Federal Bureau of Investigation (FBI). The U.S. indicted him in February for his function as the founding father of the fraudulent crypto scheme. Calling Bitconnect a “global Ponzi scheme,” the U.S. Department of Justice (DOJ) described:

Bitconnect is an alleged fraudulent cryptocurrency funding platform that reached a peak market capitalization of $3.4 billion.

The Justice Department defined that Kumbhani, 36, of Hemal, India, “misled investors” about Bitconnect’s lending program. They claimed that it used proprietary technology, particularly the “Bitconnect Trading Bot” and “Volatility Software” to “generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets.” The authority emphasised:

Bitconnect operated as a Ponzi scheme by paying earlier Bitconnect traders with money from later traders.

“In total, Kumbhani and his co-conspirators obtained approximately $2.4 billion from investors,” the DOJ added.

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Kevin Helms

A scholar of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source methods, community results and the intersection between economics and cryptography.

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