2 billion dollars crypto fraud Bitconnect and founder charged - director is committed to criminal prosecution - regulation Bitcoin News
2 billion dollars crypto fraud Bitconnect and founder charged - director is committed to criminal prosecution - regulation Bitcoin News
The 2-billion dollar crypto fraud system Bitconnect and its founder were charged in the USA in a parallel asset action, a BitConnect director and top promoter in the USA was guilty of criminal law, ”said the US Ministry of Justice (doj).
US authorities proceed against Bitconnect and his founder
The US authorities continue to act against the fraudulent crypto trade scheme Bitconnect and its managers this week. "It is believed that the BitConnect scheme is the largest cryptocurrency fraud that has ever been charged criminals," described the doj.
The US stock exchange supervision SEC announced on Wednesday that she submitted a lawsuit against Bitconnect, her founder Satish Kumbhani, her leading US promoter Glenn Arcaro and his connected company Future Money Ltd. The SEC found that Kumbhani, 35 years old, is an Indian citizen resident in Surat, India, whose current place of residence is unknown.
according to the Commission:
You have cheated small investors by a global fraudulent and non-registered offer of investments in a program with digital assets by $ 2 billion.
The complaint submitted by the SEC at the US district court for the southern district of New York explains that the “defendants offered a fraudulent and non-registered offer and a sale of securities in the form of investments in a“ lending program ”'from Bitconnect.”
The SEC states that the Bitconnect Lending Program "ultimately managed to obtain more than 325,000 bitcoins from investors worldwide".
In the lawsuit, it is claimed that the "defendants have incorrectly presented that Bitconnect would use its allegedly proprietary" volatility software trading bot ", which would achieve high returns with the deposits of investors.
Bitconnect and Kumbhani have built up a network of promoters around the world and rewarded them for their advertising efforts and reach with commissions, of which they conceal a considerable part of the investors. "The complaint costs of the SEC" [the] accused, which violate the fraud control and registration provisions of the Federal Working Act. In the complaint, an injunction is requested, skimming plus interest and civil law sanctions, ”continued the Commission. The controller before achieved settlements with two of the five people in connection with the promotion of the BitConnect program were charged. In a parallel campaign, the Ministry of Justice announced on Wednesday that Arcaro, a Bitconnect director and the leading US promoter of the program, guilty was guilty under criminal law. The doj described: Arcaro admitted that the BitConnect fraud-conscious conspiracy has earned no less than $ 24 million, which he has to pay back to investors according to court documents. The Ministry of Justice said that the maximum sentence for Arcaro “twenty years in prison, $ 250,000 fines or twice the gross profit or loss from the crime, depending on which amount is higher”; Decay and reparation. ” What do you think of the procedures of the US authorities against Bitconnect and its managers? Let us know in the comment area below. Bedy verification : Shutterstock, Pixabay, Wiki Commons Top-US director and promoter from Bitconnect is guilty of criminal charges
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