The Bitconnect Cryptocurrency Scam

Bitconnect, led by Satish Kumbhani and Divyesh Kumar Dhansukhlal Darji, is among the world's biggest cryptocurrency scams.

Bitconnect, led by Satish Kumbhani and Divyesh Kumar Dhansukhlal Darji, is among the world's biggest cryptocurrency scams.

The scheme in the US was valued at $2.4 billion, while the India operations are estimated to be worth INR 41,000 Cr, with Darji receiving a 10% cut. The scam included additional fraudulent projects like Dekado Coin and Regal Coin.

Bitconnect used BitConnect Coins (BCC), an aggressive Ponzi scheme similar to Amit Bhardwaj’s MCAP tokens under GainBitcoin. Investors were promised 1% daily interest and doubling returns in 100 days.

The legal proceedings began in the US in February 2022, with Kumbhani indicted for operating a global crypto Ponzi scheme, including charges of wire fraud, price manipulation, and money laundering.

In India, Darji was arrested in 2018 but granted bail in 2019. Other accused individuals include Dhaval Mavani and Suresh Gorasiya. The Enforcement Directorate (ED) seized land worth INR 9 Cr linked to Darji in October 2021.

Interestingly, while many investors including state officials benefited from the Bitconnect scam, few filed complaints. Both main suspects, Darji and Kumbhani, have been on the run, and Kumbhani has not been served court orders due to his disappearance.