The long-standing crypto fraud case against BitConnect, its founder and promoters has yet to be resolved. The SEC has revealed that Satish Kumbhani, the founder of the crypto exchange, is nowhere to be found.
The SEC is looking for the indicted founder of BitConnect
in a recent submit to courtSEC attorney Richard Primoff stated that Kumbhani has disappeared from his native India. He added that all attempts to find out his whereabouts have failed
Since November, the commission has been consulting with that country’s financial regulators in an effort to find out Kumbhani’s address. At the moment, however, Kumbhani’s location is unknown, Primoff said.
This has resulted in the SEC not being able to notify Kumbhani of the allegations leveled against him. The SEC asked the court to postpone the case until May 30, as the search for the 36-year-old continues.
The SEC filing comes after Kumbhani was formally charged with involvement in $2.4 billion in San Diego last Friday by the United States Department of Justice (DOJ). The indictment accuses the BitConnect founder of misleading investors worldwide through the crypto exchanges “Lending Program”.
Under the said program, Kumbhani and others told investors that the exchange could bring them profits using two proprietary automated trading software – “BitConnect Trading Bot” and “Volatility Software”.
While no such technology existed, for years the exchange continued the Ponzi scheme, using money from new investors to pay early investors, while also transferring much of the money.
In 2018, the stock market abruptly ended the Lending program after receiving shutdown orders from state regulators, including Texas and North Carolina. Glenn Arcaro, the promoter of BitConnect in the US, pleaded guilty to fraud charges last September.
The SEC is still going after other promoters of the Ponzi scheme. Kumbhani could face up to 70 years in prison if found guilty on all charges. The court also wants to recover the $2.4 billion stolen from investors.
Victims of crypto scams can hope for justice
While many crypto scams have remained unsolved, more and more cases are being solved. In the recent past, courts have increased their involvement in getting crypto scammers booked.
This year sees the return of $3.6 billion worth of Bitcoin stolen from Bitfinex in 2016. Two suspects were also arrested through the efforts of DOJ investigators.
Meanwhile, victims of the scams have been encouraged to come forward to demand compensation.
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About the author
Olivia’s interests span the entire cryptocurrency and NFT and DeFi industry. She remains as fascinated with cryptocurrencies today as she was in 2017 when she first started reading about them. She is actively looking for the latest Crypto related stories. When she’s not writing, she tends to her pet Chihuahua or prepares vegan recipes. Reach me at [email protected]
This post BitConnet CEO Flees India After $2.4 Billion Crypto Ponzi Scheme Crackdown
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