The US Securities and Exchange Commission (SEC) sued Satish Kumbhani, the founder of the now-defunct cryptocurrency exchange platform BitConnect, on Wednesday, accusing him of fraudulently raising approximately 20% of funds from retail investors. One hundred million U.S. dollars.
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The committee expanded a civil case announced in May of this year, accusing Kumbani, an Indian citizen, of illegally peddling BitConnect’s unregistered products between January 2017 and January 2018, and against those who promoted BitConnect products. Glenn Arcaro (Glenn Arcaro) and his founding company, Future Money, filed allegations that they received more than $24 million in “referral commissions” and “development funds” during the promotion of BitConnect from August 2017 to January 2018 “.
The U.S. Securities and Exchange Commission filed the above-mentioned lawsuit in Manhattan Federal Court, seeking to fine the defendant, recover illegal gains and other remedies. The committee stated that Akaro has pleaded guilty to related criminal charges brought by the United States. As of now, there is no further details.
BitConnect was established in 2016. The platform created a digital token called “BitConnect Coin” that can be exchanged for the popular cryptocurrency Bitcoin.
The US Securities and Exchange Commission stated that investors in BitConnect’s “loan plan” were told that the platform would use a “volatility software trading robot” that could provide investors with a monthly return of 40%; investors subsequently received fictitious On the surface, the annual return is as high as 3700%. However, according to the commission’s allegations, the price of BitConnect Coin actually plummeted by 92% on January 16, 2018, causing heavy losses for investors.
The committee stated that the 35-year-old Kumbani had lived in Surat, India, but his whereabouts are currently unknown; while the 44-year-old Akaro lives in Moorpark, California and is registered in Hong Kong, China. Established Future Money.
Kumbani has not been found, and lawyers for Akaro and Future Money have yet to respond to requests for comment.
Prior to this, on May 28, the US Securities and Exchange Commission also filed related lawsuits against five other people who promoted BitConnect products, including Michael Noble and Joshua Jeppeen, as well as those of the latter. The fiancee has been sentenced to pay more than 3.5 million U.S. dollars and 190 Bitcoins. According to court records, the other three people did not respond to the lawsuit or were not summoned.