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28 March 2024
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The SEC Filed Charges Against BitConnect, its Founder, and Top US Promoter


The US Securities and Exchange Commission has officially pressed charges against one of the most controversial crypto projects – BitConnect.

Years after halting its services, the saga with BitConnect has taken another turn as the SEC has filed an action against the founder and some of the promoters. The Commission has alleged that they have swiped more than $2 billion from retail investors through an unregistered offering of digital assets.

The SEC Files Charges Against BitConnect Founder

Launched in early 2016, BitConnect promoted itself as a platform with a highly advanced trading bot that urged users to deposit various cryptocurrencies to earn extraordinary high returns. Although that sounds too good to be true, the platform actually gathered billions of dollars worth of digital assets, and its own crypto (BCC) found a home in the top ten coins by market cap for a while.

However, it all started to crumble in late 2017 when several US state agencies issued cease and desist orders. As such, BitConnect shut down its exchange and lending operation in January 2018.

More than three years later, though, the shadow of the scheme remains, and the top US securities regulator has gone after the platform itself, the founder Satish Kumbhani, and the top US promoter and his affiliated company.

The SEC has alleged all parties that they have defrauded retail investors out of around $2 billion through “a global fraudulent and unregistered offering of investments into a program involving digital assets.”

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