Finally, BitConnect Founder Accused of Cheating RM8.3 Billion!

thecekodok

 The Securities Exchange and Commission (SEC) has finally sued the founder of BitConnect for allegedly defrauding thousands of investors totaling $ 2 billion (about RM8.3 billion), including running an unregistered investment offering.


BitConnect founder, Satish Kumbhani has deceived his investors about the ability of BitConnect crypto tokens that can provide a profit of up to 40% through "volatility software trading bot", while the bot does not exist.


At the same time, the SEC also sued a promoter, Glenn Arcaro for receiving more than $ 24 million in referral commissions through BitConnect.


Meanwhile, another five individuals involved in the scam were also charged in May.



BitConnect was founded in 2016, also launched a native token - BitConnect Coin which is said to be convertible to Bitcoin (BTC).


Through the loan program offered by BitConnect Coin, as much as 40% of the monthly profit and 3,700% of the annual profit can be obtained using "volatility software trading bot".


The opposite happened when BitConnect Coin plunged 92% on January 16, 2018, causing investors to turn a blind eye.


This BitConnect scam is also likened to a ponzi scheme because investors are paid with money earned from new investors.

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