- Charged by a San Diego Court last week with $2.4 Billion worth Ponzi Scheme
- Charged with Fraud, Wire Fraud, Commodity, Price Manipulation, Money Laundering, etc.
- Founded Bitconnect in 2016.
BitConnect founder Satish Kumbhani, who was charged criminally by a San Diego court in the U.S. last week for operating $2.4 billion worth of a Ponzi scheme from investors, has allegedly fled from his native place in India, according to officials.
36-year-old Kumbani was indicted by the Justice Department for committing fraud, wire fraud, conspiracy to commit commodity price manipulation, operation of an unlicensed money transmitting business, conspiracy to commit international money laundering.
According to SEC attorney Richard Primoff, Satish Kumbani “has likely relocated from India to an unknown address in a foreign country,” as said in a court filing. It further said, “Since November, the commission has been consulting with that country’s financial regulatory authorities in an attempt to locate Kumbhani’s address. At present, however, Kumbhani’s location remains unknown.” Primoff also approached the court for an extension until May 30. As for the SEC, they seek to hunt Kumbhani down and once caught, take him to the U.S. where he will be served with a complaint. If Kumbhani lands on the American soil, he could be arrested and once indicted of all the charges imposed, he could face a prison time upto 70 years.
Kumbhani who created BitConnect in 2016 and the digital token, BitConnect Coin, was sued by the Securities and Exchange Commission last September on counts of fraudulently raising a ginormous amount of $2 billion from BitConnect’s investors.