Ponzi Scheme Exposed: India Seizes $198M in Crypto Tied to BitConnect Scam
India’s ED seizes $198 million in cryptocurrency linked to the BitConnect Ponzi scheme, exposing one of many largest crypto fraud instances in historical past.
India Cracks Down on BitConnect Ponzi Scheme
India’s Directorate of Enforcement (ED) has seized cryptocurrencies price roughly Rs. 1,646 crore ($198 million) in reference to the BitConnect Ponzi scheme, marking one of many nation’s largest crypto fraud investigations. The ED performed search operations on February 11 and 15 beneath the Prevention of Cash Laundering Act (PMLA), 2002.
In keeping with an official assertion, investigators additionally seized Rs. 13.5 lakh in money, a Lexus automobile, and a number of digital units. The probe was primarily based on First Data Studies (FIRs) registered by the Crime Investigation Division (CID) in Surat.
BitConnect’s Fraudulent Scheme
Between November 2016 and January 2018, BitConnect lured buyers worldwide, together with in India, the U.S., and different nations, with guarantees of excessive returns by way of its “Lending Program.” The corporate falsely claimed that an automatic volatility software program buying and selling bot might generate as much as 40% month-to-month returns, amounting to 3,700% annual income.
Nevertheless, authorities discovered that no precise investments had been made. As a substitute, the perpetrators transferred the funds into non-public digital wallets, concealing them from buyers and regulators.
Monitoring Hidden Crypto Property
The ED’s investigation concerned analyzing a number of crypto wallets and conducting on-the-ground intelligence operations. Authorities recognized and seized the digital property, guaranteeing that illicit funds couldn’t be additional laundered.
BitConnect collapsed in early 2018 after being uncovered as a Ponzi scheme. Following its downfall, international authorities intensified investigations, resulting in a number of arrests and authorized actions.
Authorized Actions Towards BitConnect Founders and Promoters
BitConnect’s founder, Satish Kumbhani, was indicted within the U.S. in February 2022, however his whereabouts stay unknown. In the meantime, Glenn Arcaro, the platform’s high U.S. promoter, was sentenced to 38 months in jail and ordered to repay $17 million to victims.
The $2.4 billion fraud stays one of many largest cryptocurrency scams, with authorities worldwide working to get better stolen property and maintain these accountable accountable.
India’s Crypto Fraud Crackdown Continues
This main seizure highlights India’s ongoing efforts to control the crypto trade and fight monetary crimes. With rising scrutiny on digital property, authorities are ramping up enforcement to guard buyers from fraudulent schemes.
As crypto rules evolve, staying knowledgeable is important. Observe the most recent developments in cryptocurrency legal guidelines and fraud prevention to safeguard your investments.
