The interesting story of BitConnect has gotten even more interesting for those who had not invested any money into the exchange scam.
For those who are new to the BitConnect topic, it was a cryptocurrency exchange that was reportedly running a scam scheme.
The Indian State Police Enters the Investigation
After BitConnect was officially announced as a scam scheme, many regulatory authorities from around the world wanted to get their hands on the scam’s masterminds.
It was established that Satish Kumbhani, who was the founder of the exchange was the mastermind behind the scam scheme.
Therefore, he was wanted by several law enforcement authorities from countries such as the United States and the United Kingdom.
From the United States, it was the US Securities and Exchange Commission that went after BitConnect. They even dragged the exchange to court and wanted them to answer for their crimes and scam.
Founders of the Exchange
For the record, the exchange was founded by two members; Satish Kumbhani and Glenn Arcaro. Kumbhani is an Indian while Glenn Arcaro is an American.
Initially, the US SEC went after Glenn Arcaro while they searched for Satish Kumbhani. However, the US SEC has recently claimed that Satish Kumbhani has relocated to India.
The Indian Police Launches a Probe against Kumbhani
It seems that the US SEC has recently announced that Satish Kumbhani is wanted in the United States and it has requested support from the Indian Police.
This is the reason why the Indian Police seem to have come into action in order to arrest the Indian national. The Indian Police is now investigating about Kumbhani and has launched a probe for the same purpose.
According to the reports, the Indian Police launched their probe against the BitConnect founder on Wednesday.
Pune Police is in Action
There are speculations that Kumbhani may be living in Pune after relocating from the United States. Therefore, the Maharashtra Police has ordered the Pune Police to look into the matter and submit their initial investigation report as soon as possible.
Even a lawyer based in Pune has lodged a complaint against the exchange as well as Kumbhani alleging the exchange of stealing his Bitcoin.
The lawyer has claimed that he ended up losing 220 Bitcoin to the exchange which translates to $5.2 million. The plaintiff has claimed that the initial investment he had made was for 54 Bitcoin. However, he managed to earn 166 Bitcoin in the form of returns, totaling 220 Bitcoin.
The lawyer has claimed that the transactions he is referring to were processed between the years 2016 and 2021.
The amount that the lawyer has complained about is nothing compared to the scam scheme BitConnect had run.
It was back in 2016 when the exchange had launched and it operated until February of 2022. As a result of the scam scheme, the exchange was able to steal away $2.4 billion.