September 2, 2021

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

 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.