BitConnect co-founder under investigation by Indian police

BitConnect co-founder Satish Kumbhani is reportedly being investigated by police in India.

According to The Indian Express, law enforcement agency Pune Police are looking closely at Kumbhani after a complaint was filed against him by a Pune-based lawyer.

The complainant claimed he has lost around 220 Bitcoin (BTC) to the value of $5.2m due to BitConnect. His primary investment was 54 BTC with returns of 166 BTC with transactions taking place between 2016 and 2021.

Six additional people are alleged to be involved in the scam alongside Kumbhani. However, no arrests have yet been made.

Launched in 2016, the BitConnnet digital currency platform reportedly fraudulently raised around $2.4bn from investors before closing two years later and disappearing with the stolen funds.

The US Department of Justice (DOJ) recovered $56m in stolen funds from BitConnect. However, even after the cryptocurrency scam ceased operations, Kumbhani has since been charged by the DOJ for operating a BitConnect scam this year in February.

Although the US Securities and Exchange Commission has been unable to locate the whereabouts of missing Kumbhani, his last known location is said to be in India.

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Source

Updated: 08/18/2022 — 16:00