Bitcoin News — BitConnect

Senior BitConnect Promotor Arrested by Indian Authorities

Posted by Muyao Shen on

Former BitConnect India head Divyesh Darji was arrested at Indira Gandhi International Airport in New Delhi on Sunday.

Read more →

Police Arrest Alleged India Head of Now-Defunct Bitconnect Scam

Posted by Marie Huillet on

Indian police have arrested a man who was allegedly involved in promoting the Bitconnect investment scam.

Indian police have arrested a man who was allegedly involved in promoting the Bitconnect investment scam, Financial Express reported August 18.

The suspect, Divyesh Darji, is said to have been the India head of Bitconnect, the high-yield investment program that ceased its operations in January 2018 after coming under scrutiny for appearing to be a fraudulent Ponzi scheme.

Darji, a resident of Surat city, had reportedly already been issued with a look-out circular and was arrested August 18 in Delhi airport, after a tip-off from local immigration services. Financial Express cites Inspector P G Narwade of Criminal Investigation Department (CID-Crime) of Gujarat police as saying that:

“[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.”

Narwade added that the cost of one BCC coin on January 16, 2018 – the date on which Bitcoinnect formally closed its operations – was $362.

According to Financial Express, a recently filed Freedom of Information Report (FIR) shows that this is the third case under investigation by the Surat unit of CID. Local promoters of Bitconnect are alleged to have fled with 1.14 crore (11.4 million) rupees worth of Bitcoin from one investor.

The CID further claims that staff at the Bitcoinnect office in Surat admitted that promoters had overall amassed “crores [tens of millions] of rupees from thousands of investors.”

The CID was reportedly initially alerted to the scam following allegations from another Surat resident, Shailesh Bhatt, who had claimed to have been kidnapped and robbed of 90 million rupees worth of Bitcoin by local police.

As it subsequently emerged, Bhatt had himself been implicated in the alleged extortion of 1.55 billion rupees’ worth of crypto and cash at gunpoint – including 2,400 bitcoins – from two accomplices of another local Bitconnect promoter, Satish Kumbhani. Bhatt, himself a Bitconnect investor, had reportedly held Kumbhani responsible for the loss of his own funds.

In the midst of the CID’s investigations into this web of incidents, Bitconnect suddenly ceased its operations, meaning that scores of investors were no longer able to redeem or trade their BCC holdings.

As Cointelegraph has previously reported, BCC reached the summit of its popularity in December 2017, when the token’s market capitalization hit about $2.7 billion. Just days later, on Jan. 4, the state of Texas issued a cease and desist order against BitConnect for the selling of unlicensed securities, triggering a crash of the BCC token and the platform’s closure.

Since then, former BitConnect investors have been pursuing a class action lawsuit seeking compensation from the company.

The case has drawn widespread condemnation from the crypto community, including Ethereum’s Vitalik Buterin.

Read more →

India Bitconnect Head Arrested

Posted by C. Edward Kelso on

India Bitconnect Head ArrestedAlleged India Bitconnect head, Divyesh Darji, was arrested this week at an airport in Delhi as he arrived from Dubai. He and conspirators are accused of bilking millions of dollars (Rs 88,000 crore) from Indian investors seeking to find financial refuge during the government’s demonetization campaign. Also read: Report: 15,000 Twitter Crypto Scam Giveaway Bots […]

The post India Bitconnect Head Arrested appeared first on Bitcoin News.

Read more →

The Best and Worst Cryptocurrency Investments for the First Half of 2018

Posted by Jamie Redman on

The Best and Worst Cryptocurrency Investments for the First Half of 2018As far as cryptocurrency markets are concerned the last six months of 2018 has been the exact opposite of the 2017 bull run last year. A great majority of digital assets have lost between 60-90 percent of their values since the beginning of the year. Today we’re going to look at which crypto-markets performed the […]

The post The Best and Worst Cryptocurrency Investments for the First Half of 2018 appeared first on Bitcoin News.

Read more →

Texas State Securities Board Issues Cease and Desist Order to Crypto Promoters

Posted by Helen Partz on

The Texas State Securities Board has taken emergency action against a network of fraudulent crypto-related firms.

The Texas State Securities Board (SSB) has issued an emergency cease and desist order to a network of cryptocurrency-related firms, the SSB announced in an official statement July 12.

SSB commissioner Travis J. Iles took emergency action on July 11, suspending a group of crypto-related companies that allegedly offered fraudulent crypto investments to state residents. According to the order, the companies are immediately suspended from offering securities in Texas until the security is registered or exempt.

The order lists a Utah-based network of three companies; Mintage Mining LLC, Symatri LLC, and NUI Social. According to the SSB’s statement, Mintage Mining offers illegal and fraudulent investments in cryptocurrency mining. Symatri is issuing a newly launched coin dubbed Kala and offering investors an opportunity to acquire Kala-mining equipment. NUI Social, touted as a multi-level marketing company with over 300,000 members in 140 countries, recruits individuals for the cryptocurrency investments.

The order also names BC Holdings and Investments, which is allegedly involved in sales of crypto mining investments offered by Mintage Mining, as well as Houston-based Wyatt McCullough and William Douglas Whetsell, who are affiliated with NUI Social.

The order cites violations of the Texas Securities Act, claiming that the companies “[made] deceptive claims to the public,” such as promising “extraordinary returns” of up to 250 percent annually and claiming that the companies offer the investments in compliance with securities laws. It states that Symatri failed to disclose Kala token details and provide information on the risks of crypto investments.

Earlier this week, the SSB released a report on mid-year enforcement highlights, featuring protection for “investors from fraudulent cryptocurrency-related investment products.” The SSB was “the first state securities regulator to issue an administrative order” against illegal crypto-related firms in 2017. SSB investigations of crypto-related investments have led to “nearly 40 pending or completed enforcement actions.”

In February, the SSB issued an emergency cease and desist order to, citing poor disclosure of information about the company. In January, the SSB issued a similar order against notorious scam project Bitconnect for selling unlicensed securities.

Read more →