BitConnect Founder Satish Kumbhani Indicted for $2.4 Billion Crypto Pyramid Scheme
Incident Details
Summary
BitConnect operated from 2016 to 2018, promising investors returns of up to 40% per month through a fictitious 'trading bot.' The platform raised $2.4 billion from global retail investors through a pyramid scheme structure that paid early investors with new investor funds. When the scheme collapsed in January 2018, investors lost billions. U.S. promoter Glenn Arcaro pleaded guilty in September 2021 and agreed to forfeit $24 million. In February 2022, founder Satish Kumbhani was indicted on federal charges of wire fraud conspiracy, commodity price manipulation, and money laundering. The case became one of the largest crypto fraud cases in history.
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