The US Securities and Exchange Commission (SEC) has filed a case against the founder of BitConnect, Satish Khumbhani, for promoting the $2 billion crypto scam, according to a report.
As per the US regulatory authority, BitConnect is “a global fraudulent and unregistered offering of investments into a program involving digital assets.”
It has been reported that Khumbhani was the lead promoter of the company, which defrauded the investors. While advertising about company’s program, BitConnect announced that it will offer high returns to the investors and generated a total of $2 billion from them. However, later, it was found that the fund transferred by the investors were supplied to the digital wallet accounts of Khumbhani and others.
The SEC, in its public statement, mentioned that BitConnect had generated a large network around the world, which promoted its program.
Recently, Lara Shalov Mehraban, Associate Regional Director of SEC’s New York Regional Office, said, “We allege that these defendants stole billions of dollars from retail investors around the world by exploiting their interest in digital assets. We will aggressively pursue and hold accountable those who engage in misconduct in the digital asset space.”
While the SEC decides to compose finds, recover some funds and other things, the authorities are unable to find the whereabouts of Khumbhani.