SEC files lawsuit against BitConnect over role in $2B crypto fraud
The US Securities and Exchange Commission on Wednesday sued Satish Khumbhani, the founder of now-defunct cryptocurrency Ponzi scheme BitConnect, over his alleged role in the $2 billion cryptocurrency scam that shook the crypto world.
In a press release issued by the agency, the regulatory authority called BitConnect “a global fraudulent and unregistered offering of investments into a program involving digital assets.”
Khumbhani was the top U.S. promoter of the company, which eventually saw over $2 billion in total taken from investors via a program that BitConnect purported would offer high returns.
The SEC is accusing Khumbhani and others of siphoning investors’ funds to digital wallets for their own benefit. The finance watchdog went on to state that it was a large collective exploit as BitConnect established a large network of promoters around the world.