Indian Authorities Join the Hunt for BitConnect Scam Mastermind

Young Canadian Crypto Trader Being Sued For Defrauding
  • In a sophisticated pyramid scam, the scam caused participants to lose billions.
  • The US government filed charges against Satish and his confederates in September 2021.

BitConnect was launched in 2016 and was hailed as a major game-changer. As a result of its popularity among eager investors seeking huge profits in a short period of time, this platform ultimately ended up causing problems for many individuals. In a sophisticated pyramid scam, it caused them to lose billions, totalling $2.4B.

Satish Kumbhani, an Indian, orchestrated the scheme and is now a wanted man in both his own country and the United States. The project was successful because it assured backers of a massive return on investment (ROI) of 10%, payable in the platform’s native coin, BCC (BitConnect). However, users were required to invest using Bitcoin (BTC). But, like with other pyramid scams, many participants lost everything when the scheme’s leader vanished with their Bitcoins.

Indian Authorities Jump In

It wasn’t until later, however, that Indian authorities joined the hunt for the master scammer. This seems to be no longer the case. An investor had reported the scam to the authorities after losing nearly 220 BTC. The investor had been lured by Satish and his associates to deposit 54 BTC in exchange for a return of 166 BTC.

The US government filed charges against Satish and his confederates in September 2021 and began searching for him at that time. The ringleader fled to safety. Since then, authorities in the United States have been looking everywhere for him. Now that their Indian colleagues have joined the quest, their work seems to be simpler.

So far, US authorities have sold $56 million worth of Satish’s assets to pay out his victims. Satish Kumbhani, if apprehended and convicted, might spend the next 70 years in prison.

 Recommended For You:

How Much Risk Will the Upcoming Ethereum Merge?

A devoted content writer having 3 years of crypto trading experience. Loves cooking and swimming. Stays up to date with the latest developments on blockchain technology.