Kumbhani is also accused of fraudulently increasing the price of BCC tokens.
The trial date for this case is set for May.
According to the U.S. Attorney’s Office in San Diego, a grand jury indicted BitConnect’s creator Friday for his part in allegedly cheating investors out of more than $2 billion. Satishkumar Kurjibhai Kumbhani, 36, of Surat, Gujarat, India, has been accused of the most significant cryptocurrency scam ever prosecuted, according to the U.S. Attorney’s Office.
According to the prosecution, BitConnect investors were misled by the company’s assertions that proprietary technology — known as “BitConnect Trading Bot” and “Volatility Software” — was utilized to transform investors’ money into significant profits. According to the U.S. Attorney’s Office, through a Ponzi scheme, BitConnect used investors’ money to reimburse other BitConnect investors.
Price Manipulation of Native Token BCC
As part of a second alleged plan, Kumbhani is accused of fraudulently increasing the price of BitConnect’s digital currency, known as BitConnect Coin or BCC, and using his promoters to give the impression that there was an increase in demand for BCC.
Prosecutors further claim that he managed an unlawful money transmission company and was a member of an international money laundering conspiracy that used the fraud profits to make Bitcoin and BCC transactions to investors and cryptocurrency buyers.
Federal prosecutors said Glenn Arcaro, who they believe was BitConnect’s most prominent American promoter, pled guilty to federal charges in the conspiracy last year. The trial date for this case is set for May. To learn about their rights as victims, submit an impact statement, and identify as a prospective victim, investors who were harmed were urged to go online where they will find all information.