Satish Kumbhani, the founder of the cryptocurrency investment platform BitConnect, is now being investigated in India for the multi-million dollar scam.
Reports found that a Pune City-based lawyer, Kondhwa Budruk, filed a complaint in the case on Aug. 16 to the cybercrime police.
BitConnect another scheme to mislead investors
The first disclosure report (FIR) stated that the lawyer had lost nearly 220 bitcoins (close to a market value of $ 5.14 million) with various investment platforms. The lawyer named Kumbhani (36) and six others. No arrests have reportedly been made so far.
In early February, a San Diego federal jury indicted the BitConnect founder on charges of running a Ponzi scheme. Based on this, it turned out that the founder had paid early investors with funds from subsequent investors, stealing nearly $ 2.4 billion from them.
In this case, according to the FIR, the complainant was deceived by his initial investment of 54 bitcoins and the yields of 166 bitcoins, which he would have been forced to reinvest in the platforms between 2016 and June 2021. According to high-level police the Inspector DS Hake, Kumbhani and his associates were running a virtual currency scam that allegedly fooled investors.
Indian FM raises new concerns as agencies probe platforms
The news comes just days after Indian Finance Minister Nirmala Sitharaman raised new concerns about investing in virtual assets. “The government has already warned. I think we will all have to share our thoughts and move with some caution on this, “Sitharaman warned the public and startup entrepreneurs.
His comments also come following an ongoing investigation in which the Indian Enforcement Directorate (ED) blocked bank assets worth approximately $ 46 million that belonged to the troubled Vauld cryptocurrency exchange after freezing the bank account of one of the directors of Zanmai Lab Private Ltd, the operator of the Indian cryptocurrency exchange WazirX.
This is significant considering India’s cryptocurrency ownership is the seventh highest in the world, with about 7.3% of the Indian population owning cryptocurrencies in 2021, according to a recent UNCTAD report.
That said, Minal Thukral, CoinDCX’s executive vice president for growth and strategy, expressed optimism about the future of cryptocurrencies in India in a recent interview.
“According to the UN report, cryptography shows dramatic development in recent years, which is a positive sign given that 65 million Indians (~ 50%) have access to the internet now. Furthermore, crypto innovations will continue to grow in India, regardless of the continued fear of rate hikes, inflation, etc., “Thukral explained.
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