It will hardly be a matter of time until authorities catch up on BitConnect founder Satish Kumbhani and face the charges above again.st him.
Kumbhani was accused by a US federal grand jury for orchestrating a $2.4 billion bitcoin Ponzi scam.
He was charged with wire fraud, commodities cost manipulation, operating an unregistered money transmitting business.
Kumbhani further faces conspiracy to commit international money laundering, the US Department of Justice said Friday.
The 36-year-old Kumbhani, of Hemal, India, is above again. on the run folbottoming his 2018 abandonment of the program. If convicted of all charges, he faces up to 70 years behind bars.
Kumbhani is charged with scamming investors atop BitConnect’s token “loan program,” in which he claimed the company’s patented technology would create big rewards for investors by watching crypto exmove markets.
BitConnect Founder Went Too Far
Kumbhani and his co-conspirators promoted the token investing platform’s “BitConnect Trading Bot” and “Volatility Software” as being capable of building guaranteed returns by exchanging on the token exevolution market’s volatility.
BitConnect was a phony bitcoin investment platform which began in 2016 and had a peak market valuation of $3.5 billion, according to the DOJ.
After a year, the BitConnect founder terminated the lending program, but managed to manipulate the rate of BitConnect Coin (BCC) in such a way which it appeared to be anew profitable. BitConnect Coin peaked at $463.31.
Total crypto market cap at $1.883 trillion in the daily chart | Source: TradingView.com
“Crime, particularly criminal activity involving digital currency, endures to transcend international borders,” Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, stated.
Additionally, Kumbhani and his co-conspirators hid the whereabouts and ownership of the scam proceeds collected from investors by commingling, cycling, and dealing the funds via BitConnect’s cluster of token wallets and several foreign related exmoves.
Based on the indictment, Kumbhani circumvented US financial sector standards, including those administered by the Financial Crimes Enforcement Network, in order to escape regulatory monitoring and control of BitConnect’s bitcoin offering.
The SEC prosecuted five alleged BitConnect promotional pool members in June, including Trevon Brown (a.k.a. Trevon James), Craig Grant, Ryan Maasen, and Michael “Michael Crypto” Noble.
The US Securities and Exevolution Commission charged Kumbhani in September for his role in the $2 billion scheme. He and BitConnect’s main promoter, Glenn Aracro, pleaded guilty.
Arcaro received a portion of each investment made through BitConnect’s lending programs as a director. He pocketed up to 15% on each trade, amassing a total of nearly $24 million.
The DOJ announced last November which it would sell $56 million in token confiscated from BitConnect’s top marketer in “the biggest single recatopy of a token scam by the US to date.”
Featured image from Cryptoknowmics, chart from TradingView.com