Bitconnect which happens to be an open-source cryptocurrency, which promised high yield investment program, is no being cined as a global Ponzi Scheme by official department of United States.
A Ponzi scheme is a scheme, where the investments of the new investors are used by the creator of the scheme to reward the older investors of the scheme. Ponzi scheme is defined illegal and unethical and the occurrence of it in cryptocurrency market is becoming common these days.
It is believed that, Bitconnect, officially operated such a scheme, which went on to attain a value over billions of dollars just by scamming. It was also reported that, the founder frauded an Indian, who went on to file FIR in Pune.
Complaint by an unidentified lawyer on Kumbhani and six others
According to the reports, it is learned that, an unidentified lawyer went on to file a FIR against Kumbhani and six others for scamming him and making him a victim of their Ponzi Scheme. Reportedly, the complainant lost a lot of bitcoins in the scheme in different investments. As soon as, the FIR was launched, the police started taking charge of the case.
The Indian Police Intervenes an FBI case and begins the manhunt
As we all know, Kumbhani made most of his illegal earnings in the US, the Federal Bureau of Investigation, started its investigation process from February itself. But, as soon as the FIR was logged in Indian, the Indian Police began its search for the accused. It was also reported that, there were no arrests made until now in regards to the case. The investigations are also being done to find out if the investors went on to fraud any other investor as well.
DOJ’s statement in regards to the case
Credits: iStock
DOJ went on to describe the platform as a Global Ponzi Scheme and stated that, “Bitconnect is one of such platform, that remained under the radar for a long time and even went on to reap huge benefits.”
Writer’s Analysis:
I feel that the occurrence of Ponzi Scheme in the market needs to be stopped. Also, as far as this case is concerned, Kumbhani, needs to be tracked soon, as the investors have already lost a lot due to the fraud as well as the market situation.
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