- The founder of the crypto investment platform BitConnect, Satish Kumbhani, is being investigated in India.
- This is not the first time that the founder of BitConnect has faced legal action.
- Kumbhani was running a “virtual currency scam” that misled investors.
The founder of the crypto investment platform BitConnect, Satish Kumbhani, is being investigated in India for a multi-million dollar scam. The complaint was filed on August 16 with the cyber crime police by lawyer Kondhwa Budruk.
According to the first information report (FIR), the lawyer lost about 220 bitcoins. This amounts to a loss worth around $5.14 million. The lawyer named Kumbhani and six other people, but no arrests have been made so far.
This is not the first time that the founder of BitConnect was faced with legal action. A Federal jury in San Diego indicted Kumbhani on charges of operating a Ponzi scheme. In addition to this, it was found that Kumbhani paid early investors with funds from later investors. At the end of the day, he stole nearly $2.4 billion from these investors.
In this case, the complainant was cheated out of his initial investment of 54 bitcoins as well as his returns of about 166 bitcoins. According to the FIR, the complainant was allegedly forced to reinvest his returns in the platforms between 2016 and June of 2021.
According to a senior police inspector, Kumbhani was running a “virtual currency scam” that misled investors.
Ironically, this news comes mere days after the India finance minister raised fresh concerns about investing in virtual assets. She warned the public and startup entrepreneurs to proceed with caution when it comes to investing in virtual currencies.
This is very significant considering the fact that India’s crypto ownership is the seventh highest in the world and about 7.3% of the India population owns crypto.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
