Police in India’s southwest city of Pune have launched an investigation against BitConnect co-founder Satish Kumbhani, who is now wanted in his home country following a complaint from an investor about a missing BTC investment.
According to a report by local news outlet the Indian Express, the investor, who is also a lawyer, said he lost nearly 220 bitcoins (worth around $5.2 million) through multiple investment platforms operated by the Kumbhani and six others between 2016 and 2021. This amount includes his initial investment of 54 bitcoins and reinvestment of 166 bitcoins earned as returns.
The complaint led to the filing of the First Information Report (FIR), which meant that the case would now be under investigation. The investigators will also look to identify other victims while a search for the perpetrators has begun.
Kumbhani founded the now defunct BitConnect protocol in 2016 and operated it until 2018, when it closed for being a Ponzi scheme. While in operation, it purportedly paid out 10% in interest earnings via its BCC token. It also had a referral scheme that consumers used to earn more rewards.
According to U.S. authorities, the platform fraudulently raised $2.4 billion from misled investors. In February of this year, Kumbhani was indicted by the Department of Justice on charges of wire fraud, conspiracy to commit commodity price manipulation, and international money laundering. He will face up to 70 years of jail time if found guilty of all the…
