The US SEC has continued its efforts against BitConnect and brought fraud charges against its Founder, and its top US promoter, and his affiliate.
September 2, 2021, | AtoZ Markets – The US Securities and Exchange Commission (SEC) has filed a lawsuit against the founder of the cryptocurrency pyramid BitConnect for conducting a fraudulent and unregistered placement of securities valued at $2 billion.
According to the statement, the regulator wants a jury trial for BitConnect, its founder Satish Kumbhani, and its top US promoter, Glenn Arcaro, and his affiliate Future Money Ltd.
According to the SEC, they organized a 325,000 bitcoin fraudulent scheme ($2 billion at the time and 15,000 million at the current exchange rate). The SEC also claims that BitConnect attracted investors with inaccurate claims of up to 40% monthly income with its “software volatility trading robot” that didn’t really exist.
Earlier this year, the SEC already sued five of the scheme participants and secured the recovery of $12 million from two of them. According to the regulator, Arcaro was in charge of promoting BitConnect.
The latest lawsuit says:
“Arcaro and its promoters (none of whom were registered with the Commission as a broker-dealer or affiliated with a registered broker-dealer) promoted a potentially high-yielding investment in a retail investor loan program through style videos. referrals they posted on YouTube, sometimes several times a day, with referral links to the loan program. “
Kumbhani’s LinkedIn page goes on to say that he works on BitConnect and “educates people around the world about cryptocurrencies” on behalf of the “fast-growing bitcoin and cryptocurrency communities.”
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