Cryptocurrency promoter BitConnect guilty of $2 Billion fraud

SEC files action against BitConnect, its founder Satish Kumbhani, its top U.S. promoter, and his affiliated company.

BitConnect purportedly raised 325,000 Bitcoin for its Ponzi scheme, worth $2 billion at the time.

The regulator says BitConnect allegedly induced investors to deposit funds for the firm to deploy them in its volatility software trading bot.

The SEC already reached settlements with two of the five individuals charged in a related action for promoting BitConnect and Glenn Arcaro, who pleaded guilty.

The legal action seeks injunctive relief, disgorgement plus interest, and civil penalties.

The defendants are accused of violating the antifraud and registration provisions of the federal securities laws.

Cointelegraph

BitConnect promoter pleads guilty over Ponzi scheme as platform faces new SEC charges

Former BitConnect promoter and director Glenn Arcaro has pled guilty to wire fraud charges worth $24 million.

Read More


Decrypt

SEC Sues BitConnect Over $2 Billion Token Sale—Three Years Later – Decrypt

Bitconnect, which shut down in 2018, has been sued by the SEC for raising $2 billion in Bitcoin in an unregistered securities offering.

Read More


Cointelegraph

Crypto is too big to exist outside of public policies, warns SEC chair

SEC boss Gary Gensler argues that crypto assets should be under the same public policy imperatives to protect investors and fight illicit financial activities.

Read More