The main principle behind BitConnect is that it was run by Indian scammers trying to launder funds, following devaluation of particular banknotes in late 2016.
This principle is more and more wanting possible, following a request to Indian authorities by their US counterparts.
Authorities in Arizona and Illinois have written to India’s Legal Investigation Division, in search of help with asset seizures.
US authorities imagine the Indian scammers behind BitConnect made off with round $5.6 billion in invested funds.
If that determine is correct, BitConnect is well the largest MLM Ponzi scheme to this point – eclipsing the SEC’s 2014 bust of TelexFree (~$3 billion).
Indian authorities are actively investing BitConnect, nevertheless whether or not or not they’ll be capable to seize property is unclear.
Two people recognized by Indian authorities are Satish Kumbhani and Divyesh Darji, who collectively are believed to have based and operated BitConnect.
Divyesh Darji was arrested making an attempt to renter India from Dubai in August. Authorities have seized nugatory BCC factors held by Darji, nevertheless what he’d transformed to fiat stays unaccounted for.
Satish Kumbhani stays at giant. Indian authorities had tracked him right down to South Korea, nevertheless he’s believed to have since fled to Dubai.
He supposedly dealt with the worldwide operations of the corporate and will have possession of a giant amount of cash in Bitcoins, which belongs to buyers,” a senior CID crime officer stated.
Regionally US authorities seem like closing in on high US BitConnect buyers.
Trevon James Brown, one among a number of distinguished US buyers who promoted BitConnect over YouTube, has been subpoenaed to look earlier than the SEC on September 14th.
Calen Powell, one other BitConnect YouTube promoter, was detained and interrogated by the FBI in August.
The highest US BitConnect promoter and net-winner, Glenn Arcaro, fled the US within the days main as much as BitConnect’s collapse.
Arcaro is believed to be on the run and evading authorities by travelling on a number of passports. His present whereabouts and the way a lot he personally stole from BitConnect buyers are unknown.