How to steal $ 5.6 billion - History of BitConnect
The BitConnect project has again come to the attention of the media. This time, the authorities of several US states (IllinoisandArizona) sent a request to the Indian Criminal Investigation Department (CID) with a demand for the confiscation of property of some BitConnect project participants. According to the Times of India.
BitConnect is a financial pyramid that worked under the Ponzi scheme in the United States. At the heart of the pyramid lay the open-source crypto currency and attractive conditions for investors. BitConnect ceased operations in early 2018.
During the investigation, Indian law enforcement authorities (CID) installed the identity of two participants of the BitConnect network pyramid, they are Satish Kumbhani and Divyesh Darji. In 2016, they lured investors offering fabulous profits, namely 365% per annum.
Investors exchanged their Bitcoin money for BitConnect currencies, which according to the company should return good dividends to its investors.
BitConnect was closed and the site was shut down as soon as the Texas authorities accused the company of conducting an illegal ICO. After that, BitConnect undertook a series of fraudulent attempts to squeeze as much money out of its users as possible.
Also, the CID investigator commented on the case:
"At the time of Divyesh Darji's arrest, the cost of BitConnect was $ 360. Divyesh was arrested at Delhi airport when he flew from Dubai. Satish Kumbhani is still hiding. "
Now the US authorities are demanding the confiscation of BitConnect property in order to compensate investors' losses in the amount of 5.6 billion dollars. Most of the stolen money was deduced through a specially created front company.
Recall that not so long ago, US authorities began to regulate the activities of illegal ICO, and the functions of the regulator were transferred to SEC (SecuritiesandExchangeCommissionoftheUnitedStates).
After the sudden disconnection of the BitConnect site, users lost the opportunity to recover their money. Also, a group of investors filed a lawsuit against BitConnect in order to compensate for the damage, the company was engaged in illegal activities.