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Ponzi Scheme: India Arrests Bitconnect Head

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Bitconnect is called one of the largest Ponzi schemes of all time. One of the top promoters of the fraud has bee arrested in New Delhi’s airport. This multi-level marketing concept started out as a trading robot, used to create revenues for those that invested over time.

Clients would invest their money in an account. Investors would lose access to it for a certain lock down period. Then they would receive it back with interest. Bringing in new recruits earned extra financial rewards. A great number of cryptocurrency enthusiasts warned that this was a Ponzi scheme. The high returns they offered in the printed materials were simply unrealistic. It did not stop a huge number of hopeful people from pouring their hard earned money into it.

It became clear Bitconnect was nothing more than a scam when its operators closed down the BBC cryptocurrency exchange. They received a cease and desist letter from regulators in Texas shutting down the investment platform and the exchange. Before closing, they set up an ICO to squeeze the investors as hard as they could. Then they fled the country with millions of investors’ dollars.

Asian Division Head Divyesh Darji was arrested while transiting from Dubai to New Delhi.  The Indians caught up to him there after their own Criminal Investigation Department the CID investigated him. The teacher of 25 years supposedly has a Commerce Degree and an LLB.

Bitconnect Coins’ Launch Followed Demonitization

According to CID DGP Ashish Bhatia, they aggressively promoted the firm using social media and gala functions around the world. Once they hit demonetization, they launched their ICO Bitconnect coins. Bitconnect now faces delisting from the final digital assets exchange in September 2018.

Anyone still holding it will have lost 100 percent of their investment. Making things worse, the cryptocurrency Ponzi scheme was tied to a notorious Guarajat cryptocurrency con. Even the Indian government has representatives that connected with the money laundering Bitconnect scam. There are still three more Indians from Bitconnect who are at large— Dhaval Mavani, Satish Kumbhani, and Suresh Gorasiya.


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