Indian prosecutors investigating against BitConnect founder in $5M Bitcoin scam


After a complaint against Bitconnect co-founder Satish Kumbhani, Indian police is investigating to collect more details to take action against him.

Satish Kumbhani is co-founder of the Bitcoin investment platform, Bitconnect. Bitconnect platform was giving 100% returns in a year, against the initial investment in Bitconnect coin (BCC) in the form of staking but actually, everything was based on a Ponzi scheme & nothing. After the action of US government agencies, Bitconnect was forced to suspend its investment platform in early 2018. 

Recently Indian local news media reported that a lawyer from Pune, India, initiated legal action against Kumbhani. Through the filed complaint, the plaintiff claimed that he was defrauded by Kumbhani for 220 Bitcoins ($4.7 million). 

The filed FIR (First Information Report)  noted that Kumbhani defrauded originally 54 bitcoins. However, no action has been seen so far from prosecutors but they are working on collecting some more information to take action. Plaintiff also claimed that he reinvested 155 Bitcoins on different platforms between 2016 to 2021, on behalf of the Bitconnect founder.

Lawyer urged the investigation agencies to maintain his privacy in this case from the public domain.

At present, no government agency has clue about the location of Satish Kumbhani. Earlier this, in a $2.4 billion Ponzi scheme scam in  February, the US authorities said that nobody know where is Kumbhani and last traced the location of Kumbhani was in India.

US legal filing stated:

“Kumbhani has likely relocated from India to an unknown address in a different foreign country. Since November, the Commission has been consulting with that country’s financial regulatory authorities in an attempt to locate Kumbhani’s address. At present, however, Kumbhani’s location remains unknown.”

Interestingly, Bitconnect was a very big Ponzi scheme-based crypto investment platform till the US government agencies asked about the backend operations of the platform and how it generates rewards for users. 

Before 2017, Bitconnect was a highly popular Bitcoin investment platform via Bitconnect coin, and every crypto investor was encouraged to invest in this platform because of its better staking reward system.

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