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BitConnect founder indicted for $2.4 Bn global crypto ponzi scam

Feb 26, 2022

Satish KumbhaniA 36-year-old woman in Hemal, India; had been charged with conspiracy to commit wire fraud, commodity price manipulation, operation of an unlicensed money transmitting business, and international money laundering.

The Drama Isn’t Over

When people found out that customers were paid proportional to the amount of people they managed to get involved in their business, they quickly converted.

Netting nearly $2.4 billion in ill-gotten funds

In May 2021, the U.S Securities and Exchange Commission filed a lawsuit against five individuals associated with BitConnect. Satish Kumbhani was not on the list of defendants.

The SEC and their history with Bitconnect

Kumbhani has been accused of illegally evading U.S. regulations to avoid oversight for BitConnect, a cryptocurrency company that operates in the UK

BitConnect never registered with the federal regulator, which exposed it to potential legal problems.

If convicted of all charges, Satish Kumbhani faces a maximum total penalty of 70 years in prison.prison.