Last week, BitConnect founder Satish Kumbhani was found guilty of conducting a Ponzi scheme that duped American investors. In the intervening time, he has not been seen or heard from again.
He is an Indian citizen, and the U.S. Department of Justice charged him with crimes last week. SEC sued Kumbhani in September 2021, saying he raised more than $2 billion for BitConnect by lying about it.
People do not know where Kumbhani is now. Officials said in a legal filing on Monday that Kumbhani is most likely gone from India, and they don’t know where he is now. Before this, the Commission said that Kumbhani was likely to have moved from India to a different country. This comes after that.
Kumbhani, an Indian citizen, was not known to the Commission at the time the Commission filed this action. And because BitConnect is an unincorporated entity, the Commission must serve Kumbhani as its manager.
Since November, the Commission has been talking to that country’s financial regulators in an effort to find Kumbhani’s address. Primoff said that the Commission has been trying to find him. At the moment, Kumbhani’s whereabouts are unknown, and the Commission can’t say when or if it will be able to find him. Judge John Koeltl has agreed to give Primoff more time until May 30, but he has not said how long.
About BitConnect
BitConnect, founded in 2016, was one of the most popular ICO projects in mid-2017. With its BCC coin, it was expected to offer investors 10% interest, with users who recommended other investors gaining even more rewards.
BitConnect’s earning platform was shut down on January 16, 2018, as politicians and investors began to take notice of its offering. After the platform was shut down, BCC prices plunged from about $500 to less than $1.
Such conditions led to a court battle in the United States to bring the founders of BitConnect to justice, with Kumbhani and an American citizen named Glenn Arcaro at the heart of the scheme. The U.S. government wants to punish them. On September 1, 2021, Arcaro agreed to pay a fine for crimes. As he was charged with conspiracy to commit wire fraud as well as criminal forfeiture, he agreed to do what he was told to do.
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