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US Justice Department indicts BitConnect founder

2022/02/26 00:01

The U.S. Department of Justice announced Friday that a federal grand jury charged BitConnect founder Satish Kumbhani with defrauding investors of some $2.4 billion through its lending scheme. Kumbhani was charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit price manipulation, operating an unlicensed money transmitter and conspiracy to launder funds internationally for "orchestrating a global Ponzi scheme" according to a DOJ press release, which alleged he traded cryptocurrencies using his investors' funds, and repaid earlier investors with the funds he received from later investors. BitConnect collapsed in dramatic fashion in 2018, shuttering its exchange and lending platforms within a week after receiving cease-and-desist orders from U.S. state regulators. The company attempted to continue raising proceeds through an initial coin offering (ICO).
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