Satish Kumbhani, the founder of BitConnect, was indicted by a US federal grand jury on charges that he orchestrated a global Ponzi scheme and raised USD 2.4 billion from investors.
Kumbhani has also been charged with conspiracy to commit wire fraud and manipulation in addition to the fraudulent cryptocurrency investment platform.
Kumbhani could face a maximum of 70 years of prison penalty.
Attorney for the Southern District of California, Randy Grossman, said, “This indictment alleges a massive cryptocurrency scheme that defrauded investors of more than $2 Bn. The U.S. Attorney’s Office and our law enforcement partners are committed to pursuing justice for victims of cryptocurrency fraud.”
According to court documents, he reportedly misled investors about the platform’s supposed proprietary technology – ‘BitConnect Trading Bot’ and ‘Volatility Software.’