New Bitconnect scam arrests in India

0
31

A man who was allegedly connected to the promotion of the now defunct crypto scam Bitconnect has been arrested by the Indian police.

Divyesh Darji is the man who has been the Bitconnect’s India Head and who was leading the operations in this country for one of the biggest scams in the crypto world whose operations have stopped in January 2018 after the sudden already suspected revelation of it being a Ponzi scheme.

An arrest warrant has been issued for Darji who was taken into custody on August 18 at the Delhi airport which has been a police action initiated from a tip-off from the local immigration services.

The inspector from the Criminal Investigation Department of Gujarat police, P G Narwade has stated:

“Bitconnect came into existence in 2016, and in 2017, it launched the BitConnect [BCC] coin. It remained active till January this year. It released 2.8 crore [28 million] coins, out of which 1.8 crore [18 million] coins were sold to investors. The accused held seminars, events in India and other countries promising high interest — daily interest rate of 1 per cent — on investment in BitConnect coins.”

The inspector also added that the price in which Bitconnect last trade has taken place on January 16 2018 the day when their operations were officially closed has been 362 dollars.

A Freedom of Information Report that just receantly has been published has showed that this has been the third investigation of this kind that is undergoing at this moment by the criminal biro of the Indian city of Surat. The information that is available now suggests that all of the local promoters of Bitconnect have fled with as much as 1.14 crore which is approximately 11.4 million ruppes worth of Bitcoins collected from just one investor.

There are also other types of information comming from the Surat’s city Criminal department that showes some of the staff at the city’s Bitconnect office have claimed that the promoters of the ponzi scheme have collected “crores [tens of millions] of rupees from thousands of investors.”

The Criminal department has been informed about the scam from an allegations previously made by another Surat resident Shailesh Bhatt, who has been revealing his kidnapping experience and robbery of 90 million rupees worth of Bitcoins done to him by the local police.

At a later date in the investigation it turned out that Bhatt himeslef has taken part into an extortion of 1.55 billion rupees worth of cryptocurrency and cash at gunpoint that included 2400 bitcoins that were taken from two other people that were connected to a local Bitconnect promotor Satish Kumbhani. Bhatt as a Bitconnect investor has been accusing Kumbhani for the loss of his personal funds.

Right at the middle of the criminal department’s investigation Bitconnect had stoped all of their operations which trapped all of the assets that many investors at the platform were holding and disabled any reedem or trade capabilities.

Bitconnect had reached its hights of popularity in December 2017 with its total market cap has hit all time high of 2.7 billion dollars. On January 4 just a couple of days later in the state of Texas a cease and desist order have been issued against Bitconnect that acused it of selling unlicensed securities that have triggered the BCC token price crash and at a later point a closure.

Since those days the former Bitconnect investors have filed a class action lawsuit that seeks financial compensation from the company.