BitConnect is a major cryptocurrency fraud scheme. Now, the Indian state police are looking for one of BitConnect’s co-founders.
Indian national Satish Kumbhani is allegedly the founder of crypto Ponzi scheme BitConnect.
After a Pune-based lawyer filed an accusation that he had suffered losses of about 220 Bitcoin (BTC) or $5.2 Million due to BitConnect, the Pune police under the Indian state Maharashtra Police launched a probe against Kumbhani. The complainant stated that his initial investment was 54 BTC with returns of 166 BTC. He then allegedly used these funds to reinvest in platforms.
The claimant stated that transactions between him, the suspects, and Kumbhani took place between 2016 to June 2021. He also pointed out six other people who were allegedly part of the scam. The report states that no arrests have been made in this case.
BitConnect is a scam scheme that has been infamous in crypto history. Ponzi orchestrators are said to have fraudulently raised $2.4 billion from investors. BitConnect was launched in February 2016. It operated a platform as well as a digital currency. The company shut down in January 2018 and the founders disappeared with their investors’ money.
Despite BitConnect shutting down its operations many years ago, BitConnect has seen a lot of activity recently with the Department of Justice accusing Kumbhani of orchestrating the BitConnect scam in February 2022.
The United States Securities and Exchange Commission stated that it was not possible to locate BitConnect founder Kumbhani. The SEC stated in a court filing that Kumbhani was last seen in India in February.
Related: Dutch authorities arrest suspected Tornado Cash developer
BitConnect isn’t the only cryptocurrency scam where main arrangers are missing. Global authorities and prosecutors are also investigating scams such as OneCoin, a Ponzi scheme worth $4 billion that stopped operating in late 2019
The Federal Bureau of Investigation added Ruja Ignatova to its Ten Most Wanted List in June 2022. Ignatova is commonly known as “Cryptoqueen” within the crypto community. She was last seen in 2017.