BitConnect founder indicted over $2.4B Ponzi scheme, faces 70 years in prison

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A federal grand jury in San Diego has indicted the founder of one of the largest scams in the digital currency space, charging him with wire fraud, conspiracy to commit commodity price manipulation, and international money laundering. Satish Kumbhani, the founder of digital asset mega scam BitConnect, faces up to 70 years behind bars if convicted of all the charges.

The San Diego court claimed in its indictment that Kumbhani misled investors about BitConnect’s Lending Program. Under this program, the 36-year-old and his cronies allegedly told investors that they could generate guaranteed returns by using their investment funds to trade on the volatility of the digital asset markets, authorities said. They touted the ‘BitConnect Trading Bot’ and its proprietary ‘Volatility Software’ as being able to generate guaranteed returns.

The project collapsed in early 2018, and it was outed as a massive Ponzi scheme in which…

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