The founder of a cryptocurrency investment company was indicted on charges of orchestrating a $2.4 billion Ponzi scheme.
A federal grand jury charged BitConnect founder Satish Kumbhani on Friday with conspiracy to commit wire fraud
, conspiracy to commit commodity price manipulation, operation of an unlicensed money transmitting business, and conspiracy to commit international money laundering.
“This indictment alleges a massive cryptocurrency scheme that defrauded investors of more than $2 billion,” said U.S. Attorney Randy Grossman for the Southern District of California in a Justice Department press release
Kumbhani currently lives in India outside of the Justice Department’s jurisdiction.
The Justice Department claims that BitConnect misled investors by claiming that it could provide significant profit through its platform. The company claimed that its unique software, BitConnect