Officials from the states of Illinois and Arizona have formally contacted the Indian Criminal Investigation Agency to request the seizure of the property of a pair of BitConnect entrepreneurs.. According to the Times of India Report, a suspect has been caught, but his accomplice is still on the run with large sums of Bitcoin, most likely belonging to defrauded investors.
BitConnect (BCC) was an open source digital currency described by many as a Ponzi scheme.. The scam, which became an internet hot topic after Carlos Matos’ ridiculous motivational debut, became one of the top 20 digital currencies until its price fell within a year.. Divyesh Darji, the brainchild behind the scam, was arrested at Delhi’s airport last month.
98% Drop
In December 2017, BCC hit an all-time high of $463, but a Within a month, its value was reduced to $6.. On September 10, BCC coin trading ended with Trade Satoshi, the last exchange to host the unit, also delisting BCC.. At that time, it was worth about $0.68.
Darji started the BitConnect initiative in December 2016 with his water partner Satish Kumbhani, after which it was discontinued in India.. But by promising an annual return on investment of 800%, the scammers have managed to deceive a large number of investors into converting their BTC to BCC. people invested their Bitcoins in BCC because of the aforementioned attractive earnings promises. Kumbhani is still on the run while Darji is arrested at Delhi airport on his way back from Dubai airport. […] Kumbhani was tracked to South Korea some time ago but flew to Dubai by the time we could reach him. It is thought that Kumbhani handles the company’s worldwide operations and may have large amounts of BTC belonging to investors.”
According to the news release, Darji allegedly made a 10 percent commission from all investors who invested in the company on his behalf.. Fluent in English, Darji had run several outreach projects, helping to deceive already unsuspecting investors.. “Darji brought an investment of around Rs 4,100 crore ($566 million) to the company,” the reports said.. The total investment in Bitconnect could be around Rs 41,000 crore ($5.6 billion).”
Illinois and Arizona officials said, “The citizens of these states invested in the company in question and lost money.”
Follow us on Twitter, like our Facebook page and my Telegram channel to keep up to date with the latest developments. Join us!