Two U.S. states direct Indian investigators to confiscate BitConnect promoters’ property 23003 BitConnect promoters' property to be seized
Ashmita Dutta
Sep 13, 2018 at 4:00 PM

Arizona and Illinois have directed Indian investigators to seize the property of BitConnect promoters, who are suspected of scamming investors. As per a report by local daily Times of India, the Criminal Investigation Department [CID] needs to first get hold of the promoters associated with BitConnect.

BitConnect was an open-source cryptocurrency which shut shop in January this year after it was discovered that the company was running a Ponzi scheme.

The firm was accused of giving false assurance to the customers regarding huge investment returns and multi-level referral system.

The suspects

An investigation conducted by the CID uncovered the fact that the two primary suspects, Divyesh Darji and Satish Kumbhani, started their crypto-based investment business late last year, soon after the government implemented the demonetization of high-value currency notes.

The two suspects were involved in the local promotion of the firm and tricked many investors by promising a 365% return on their investments each year.

According to a statement by the investigator, “At the time, one BitConnect coin was worth about $360, and people invested their Bitcoins due to the attractive returns promised. While Darji was arrested from the Delhi airport on his way back from Dubai, Kumbhani is still absconding.”

The promoters have duped investors of a massive amount worth 410 billion rupees, which translated to around $5.7 billion at the time of writing.

The fraud was brought to the attention of the authorities after a local builder Shailesh Bhatt lodged a complaint with the police, alleging that he had been kidnapped and robbed of BTC worth 90 million rupees by local police.
According to a CID statement, “...after the company (BitConnect) shut shop in January 2017, he (Bhatt) kidnapped an employee of BitConnect, Dhaval Mavani, and extorted Bitcoins, Litecoins and cash worth 1.55 billion rupees from him.”

See also: Indian Police Probe Bitconnect Firm Offering 365% Yearly Gains on Bitcoin Investment

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