Indian Police Officially Launch Manhunt For Bitconnect Founder As Crypto Investor Scam Accusations Rise

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Indian Police Officially Launch Manhunt For Bitconnect Founder As Crypto Investor Scam Accusations Rise

Indian police launch manhunt for Bitconnect founder Kumbhani

  • Bitconnect labeled as global Ponzi scheme
  • Complaint by an unidentified lawyer about Kumbhani and six others
  • Indian police intervention
  • FBI developments on the case so far

Bitconnect has become a global Ponzi scheme

Bitconnect, which happens to be an open-source cryptocurrency, which promised a high-yield investment scheme, is not considered a global Ponzi scheme by the US official department.

A Ponzi scheme is a scheme in which the investments of new investors are used by the creator of the scheme to reward old investors in the scheme. Ponzi scheme is defined as illegal and unethical and its occurrence in the cryptocurrency market is becoming common these days.

It is believed that Bitconnect officially operated such a system, which reached a value of billions of dollars simply by scamming. It was also reported that the founder had defrauded an Indian, who then filed an FIR in Pune.

Complaint by an unidentified lawyer about Kumbhani and six others

According to reports, it is learned that an unidentified attorney then filed an FIR against Kumbhani and six others for scamming him and making him a victim of their Ponzi scheme. According to some information, the plaintiff lost a lot of bitcoins in different investments. As soon as the FIR was launched, the police began to take charge of the case.

Indian police intervene in FBI case and start manhunt

As we all know that Kumbhani made most of his illegal income in the United States, the Federal Bureau of Investigation started its investigation process from February itself. But, as soon as the FIR was registered in India, the Indian police started their search for the accused. It was also reported that no arrests have been made so far in relation to the case. Investigations are also underway to find out if the investors also defrauded another investor.

DOJ statement regarding the case

Department of Justice Comments on Bitconnect

Credits: iStock

The DOJ went on to describe the platform as a global Ponzi scheme and stated that “Bitconnect is one such platform, which has gone under the radar for a long time and even reaped huge benefits.”

Writer’s analysis:

I think the appearance of the Ponzi scheme in the market must be stopped. Also, when it comes to this case, Kumbhani needs to be followed up quickly, as investors have already lost a lot due to the fraud as well as the market situation.

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