Bit Connect Exchange Founder Sued by SEC for Allegedly Defrauding Investors.
07 Sep 2021, 08:00
Bit Connect Exchange Founder Sued by SEC for Allegedly Defrauding Investors
The founder and top executive of Bit Connect – a now extinct cryptocurrency exchange – is being sued by the Securities and Exchange Commission (SEC) over his potential role in fraudulently collecting approximately $2 billion from investors several years ago.
Bit Connect Is at the Center of a Legal BattleA civil case against the founder of the company was filed four months ago in May of this year. Satish Kumbhani – an Indian citizen – was formally charged by the SEC for lying about the company’s ability to garner profits. He is also being accused of violating registration laws designed to protect and shield investors from phony enterprises and ploys.
The suit was filed in a federal court in Manhattan. In addition to Kumbhani, the promoter of Bit Connect Glenn Arcaro and his financial firm Future Money Ltd was also charged after it was alleged that he received more than $24 million in his role of promoting the company and serving as the firm’s top promoter in the United States.