Skip to content

BitConnect’s Kumbhani Charged by U.S. in $2.4 Billion Ponzi Scam

  • Top promoter Glenn Arcaro pleaded guilty Sept. 1 in San Diego
  • Exchange shut down in 2018 after state regulators took action

BitConnect founder Satish Kumbhani was indicted by a U.S. grand jury on charges he orchestrated a global Ponzi scheme that raised $2.4 billion from investors in a fraudulent cryptocurrency investment platform, according to a Justice Department statement.

Kumbhani, 36, was charged in San Diego with misleading investors about BitConnect’s purported propriety technology, which falsely promised returns based on phony “volatility software” that tracked cryptocurrency exchange markets, prosecutors said Friday. BitConnect used money from new investors to pay earlier ones and also operated as an unlicensed money transmitting business, the U.S. said.