Securities and Exchange Commission officials are reportedly currently unaware of the current whereabouts of Satish Kumbhani, the founder of a cryptocurrency trading platform called BitConnect. The thing is that Satish Kumbhani was just last week charged with fraud and defrauding investors in the amount of $ 2.4 billion in a Ponzi scheme. This state of affairs puts the Securities and Exchange Commission in a very difficult position, as they must serve the 36-year-old businessman with his court documents.
In a court document dated Monday, the commission said they did not have the address of Satish Kumbhani, who is an Indian citizen. Moreover, the organization also suspects that he most likely simply fled to another country. But be that as it may, it is also necessary to mention that the Ministry of Justice charges Satish Kumbhani with a number of very different crimes, including conspiracy to commit electronic fraud, conspiracy to commit price manipulation of goods, and conspiracy to money laundering on an international scale. “The current location of Satish Kumbhani remains unknown and the Commission remains unsure when its efforts to locate him will succeed, if at all,” the Securities and Exchange Commission said in a statement.
To buy time, the commission is asking the U.S. District Court for the Southern District of New York to extend the deadline by 90 days. And since BitConnect is an unincorporated legal entity and not a formal corporation, all court documents must be served on Kumbhani himself, and not on the company, deputy head, or anyone else. First founded in 2016, BitConnect garnered quite a bit of attention on social media for its “Lending Program,” which allowed users to lend their bitcoins in exchange for the corresponding Bitconnect cryptocurrency.”
This program claimed to be able to guarantee users a profit by using investors’ money to trade on the volatility of the cryptocurrency markets. As part of this program, Satish Kumbhani, just like his co-conspirators, actively advertised the alleged proprietary technology of BitConnect, known as the “BitConnect Trading Bot” and “Volatility Software”, as being able to generate substantial profits and guaranteed income by using investors’ money for trading. on the exchange. However, as it turned out, the reality turned out to be quite different.