5 months ago
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The Enforcement Directorate (ED) has confiscated Rs 1,646 crore (approx $197 million) worthy of cryptocurrencies successful BitConnect scam. The operation, which was conducted in Ahmedabad, besides resulted successful the seizure of ₹13.50 lakh successful cash, an SUV, and respective integer devices, the officials said.
The BitConnect scam, which spanned globally, duped investors by promising monolithic returns done a supposedly “high-tech” trading bot. Founded by Satish Kumbhani, the level promised up to 40% monthly profits by converting Bitcoin (BTC) into BitConnect’s ain integer currency (BCC). This “Lending Program” besides included a referral system, resembling a multi-level selling (MLM) scam, wherever investors were encouraged to bring successful much people.
The scam ran from November 2016 to January 2018, promising investors up to 40% monthly returns done a alleged “volatility bundle trading bot.” People were lured into depositing Bitcoin (BTC), which was past converted into BitConnect’s ain cryptocurrency (BCC). The level besides had a multi-level selling (MLM) structure, rewarding users for bringing successful caller investors, emblematic of Ponzi schemes.
The level collapsed successful January 2018 aft planetary regulators stepped in, leaving thousands of investors with monolithic losses. The ED’s investigation, which began successful 2018 based connected FIRs filed by Surat’s CID, has already resulted successful the attachment of ₹489 crore worthy of properties linked to the scam.
This isn’t the archetypal clip the ED has taken enactment against BitConnect. Earlier, it attached assets worthy ₹489 crore successful transportation with the case. Authorities person besides confirmed that overseas nationals invested successful BitConnect, and Kumbhani remains nether probe by US national agencies.
Also Read: Two Estonians Plead Guilty to $577 Million Fake Crypto Mining Scam
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