In a court filing on Monday, SEC revealed that the whereabouts of the convicted Bitconnect founder remained unknown since September 2021.
noted that the convicted founder has most probably fled to a foreign country and “Kumbhani’s location remains unknown, and the Commission remains unable to state when its efforts to locate him will be successful, if at all.
The DOJ charged Kumbhani for running a Ponzi scheme via BitConnect’s lending program where the project managed to siphon off $2.4 billion from investors. Bitconnect’s native token BCC recorded an all-time-high trading price of $463.31 at the peak of the market frenzy in December 2017 reaching a market cap of $3.4 billion.
The founders rug pulled the project by January 2018, crashing the token price to near zero and causing massive losses to investors.The DOJ also accused Kumbhani of creating fake market demand for BCC to lure more unsuspecting investors. The project like many others in the ICO era turned out to be a massive pyramid scheme where the creators used early funds to pay off old investors and later ran away after collecting billions based on hype and ICO craze. .
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