BitConnect Founder Disappears Following Justice Department Indictment
Satish Kumbhani is charged for organizing a Ponzi scheme worth $2.4 billion USD.
Back in November last year, the Securities and Exchange Commission filed a lawsuit against BitConnect over a crypto Ponzi scheme worth $2.4 billion USD, resulting in the sale of $56 million USD in cryptocurrencies by the Department of Justice after the coins were seized. Now under indictment, the company’s founder and CEO Satish Kumbhani has reportedly gone missing.
According to new reports, the SEC has lost touch with Kumbhani and does not know where he is. The Indian citizen was charged with defrauding investors of $2.4 billion USD in his Ponzi scheme just last week and is due to be served his court papers. The Department of Justice is also charging him with conspiracy to commit wire fraud, conspiracy to commit commodity price manipulation and conspiracy to commit international money laundering. The Commission now suspects that he has fled the United States.
“Kumbhani’s location remains unknown, and the Commission remains unable to state when its efforts to locate him will be successful, if at all,” the SEC said. Hoping to actually get hold of Kumbhani, officials have now asked the U.S. District Court for a 90-day extension.
In other related news, Elon Musk is under investigation for alleged insider trading.
