BitConnect founder charged with orchestrating $2 billion Ponzi scheme

Discussion in 'Crypto Assets' started by Pekelo, Feb 28, 2022.

  1. Pekelo

    Pekelo

    https://www.cnn.com/2022/02/27/business/bitconnect-ponzi-scheme-satish-kumbhani/index.html

    "A federal grand jury in San Diego indicted the founder of BitConnect for allegedly orchestrating a $2.4 billion global Ponzi scheme, the Justice Department said Friday.

    Satish Kumbhani, 36, is accused of misleading investors about the cryptocurrency's "lending program," where he claimed the proprietary technology would bring substantive returns to investors by tracking cryptocurrency exchange markets.

    "As alleged in the indictment, however, BitConnect operated as a Ponzi scheme by paying earlier BitConnect investors with money from later investors," the Justice Department said in a statement. Kumbhani and his co-conspirators allegedly made about $2.4 billion in the scheme.
    After about a year, the statement said, the lending program abruptly stopped. Kumbhani's promoters allegedly propped up the price of BitConnect's digital currency to create false market demand."

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    I would say 90% of crypto lending programs are ponzis.
     
    jys78 likes this.
  2. johnarb

    johnarb

    Tokenz and Trader Curt like this.
  3. MKTrader

    MKTrader

    johnarb likes this.
  4. Pekelo

    Pekelo

    Sure. Time...

    Ah, you mean that 10% of them are NOT ponzis? No, I can't prove that. :)
     
    Last edited: Feb 28, 2022
  5. Tokenz

    Tokenz



    There's no way this was a ponzi scheme. When someone yells at you to buy something its because they care about you and want to see you succeed...:vomit:
     
    bookish likes this.
  6. RedDuke

    RedDuke

    you are too generous. It is simple, anything that pays 100 of percents, never mind thousands in interest is a ponzi. It is basically a made up paper crap that is tokenised with nothing underneath.
     
  7. johnarb

    johnarb

    What happened to your Ohm ponzi play?


     
    Tokenz likes this.
  8. At least at the OneCoin conferences, they used to drop money from the ceiling. Now that was a funny Ponzi. Dr. Ruja then gone run off with the rest!
     
    Tokenz likes this.
  9. Tokenz

    Tokenz


    Then that would mean most successful penny stocks are ponzi schemes. It would mean facebook, amazon, netflix are ponzis too.

    Your logic is horrible, you should try one day sitting down and thinking with a reasonable sound mind.
     
  10. Ed48

    Ed48

    He did say "pays 100 of percents, never mind thousands in interest is a ponzi"

    Even Madoff didn't try to pay out these rates of interest. :D
     
    #10     Mar 1, 2022