The $ 2 Billion Crypto Fraud Scheme Bitconnect and Its Founder Indicted in the United States In parallel coercive action, a director and main promoter of Bitconnect has pleaded guilty to criminal charges in the United States on criminal charges, ” the US Department of Justice (DOJ) said.
Bitconnect founder and Bitconnect are being investigated by the US authorities
This week, the US authorities continued to pursue Bitconnect’s fraudulent crypto trading platform Bitconnect and its executive directors. “The Bitconnect scheme is considered the biggest cryptocurrency fraud ever to be criminally charged,” the DOJ described.
The United States Securities and Exchange Commission announced Wednesday that it has filed a lawsuit to Bitconnect’s founder Satish Kumhani, Glenn Arcaro, and Future Money Ltd, its main US promoter. The SEC noted that Kumbhani (35) is an Indian citizen who lived in Surat, India. His current whereabouts are not known.
According to the Commission:
They defrauded investors of $ 2Billion by offering a fraudulent and unregistered global investment opportunity in a program involving digital asset investments.
The SEC complaint was filed with the US District Court for Southern District of New York. It states that the defendants made a fraudulent and unregistered sale and offer of securities in the form of an investment in a loan program. Bitconnect.
According to the SEC, Bitconnect’s loan program “ultimately managed” to secure more than 325,000 bitcoins from investors around the globe.
The complaint claims that Bitconnect’s allegedly proprietary “volatility software trading robot” would be deployed by Bitconnect. This would, according to the complaint, generate exorbitant returns through investor deposits. The Commission also added:
Bitconnect and Kumbhani created a network of promoters all over the globe and paid commissions to them for their efforts in promotion and outreach. Investors were not allowed to receive a significant portion of this.
“The SEC Complaint fees [the]defendants who broke the registration and anti-fraud provisions of federal securities law. The complaint seeks an injunction, restitution plus interest and civil penalties, ”the Commission continued.
The regulator made agreements with two of five people it had accused of promoting Bitconnect.
US Director and Bitconnect Promoter Pleads Guilty To Criminal Charges
The Justice Department announced that Arcaro, Bitconnect’s director and main promoter from the US, had pleaded guilty on Wednesday to criminal charges. The DOJ described:
Arcaro admitted that he made up to $ 24 million from Bitconnect fraud conspiracy. According to court documents, he must pay back investors.
The Justice Department clarified that the maximum penalty for Arcaro is “twenty years in prison, a fine of $ 250,000 or double the gross gain or loss resulting from the offense, whichever is greater; confiscation and restitution.
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