Indian indicted for USD 2.4 bn crypto fraud

The founder of cryptocurrency investment platform BitConnect, an Indian national, has been indicted on charges of orchestrating a global Ponzi scheme worth $2.4 billion.

According to court documents, Satish Kumbhani (36) of Hemal in Gujarat misled investors about BitConnect’s “Lending Program.” BitConnect reached a peak market capitalisation of USD 3.4 billion, the Department of Justice said. “This indictment alleges a massive cryptocurrency scheme that defrauded investors of more than $2 billion,” US Attorney Randy Grossman for the Southern District of California said. Kumbhani is charged with conspiracy to commit wire fraud and price manipulation, operation of an unlicensed money transmitting business and conspiracy to commit international money laundering. If convicted, he faces a maximum penalty of 70 years in prison.