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The founder of the $3.4 billion crypto Ponzi scheme Bitconnect has been charged in the United States. \u201cIf convicted of all counts, he faces a maximum total penalty of 70 years in prison,\u201d said the U.S. Department of Justice. \n \u201cBitconnect is an alleged fraudulent cryptocurrency investment platform that reached a peak market capitalization of $3.4 billion,\u201d the DOJ described, adding:\n<\/p>\n A federal grand jury returned an indictment today charging Satishkumar Kurjibhai Kumbhani, a citizen and resident of India, with multiple crimes for his alleged role in a massive criminal conspiracy involving the cryptocurrency company he founded, Bitconnect.<\/p>\n<\/blockquote>\n \n However, the DOJ noted:\n<\/p>\n Bitconnect operated as a Ponzi scheme by paying earlier Bitconnect investors with money from later investors. In total, Kumbhani and his co-conspirators obtained approximately $2.4 billion from investors.<\/p>\n<\/blockquote>\n \nThe indictment further alleges that Kumbhani abruptly shut down the Lending Program after about one year. He then \u201cdirected his network of promoters to fraudulently manipulate and prop up the price of BitConnect\u2019s digital currency, a commodity known as Bitconnect Coin (BCC),\u201d the DOJ explained.<\/p>\n \u201cKumbhani is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodity price manipulation, operation of an unlicensed money transmitting business, and conspiracy to commit international money laundering,\u201d the Justice Department described, adding:\n<\/p>\n If convicted of all counts, he faces a maximum total penalty of 70 years in prison.<\/p>\n<\/blockquote>\n \n
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<\/strong>\n<\/p>\nBitconnect\u2019s Founder Could Go to Prison for 70 Years<\/h2>\n
\nThe U.S. Department of Justice (DOJ) announced Friday that the founder of the global crypto fraud scheme Bitconnect has been charged.<\/p>\n\n
\nThe 36-year-old from Hemal, India, misled investors that the scheme\u2019s \u201cLending Program\u201d was able to \u201cgenerate substantial profits and guaranteed returns\u201d using \u201cBitconnect Trading Bot\u201d and \u201cVolatility Software,\u201d the justice department detailed.<\/p>\n\n
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\nIn November last year, the Justice Department announced that it was selling<\/a> cryptocurrency worth $56 million seized from the Bitconnect scheme.<\/p>\n