The biggest Ponzi scheme in the cryptocurrency space, BitConnect, is back in the limelight. The news which made it to the spotlight this time concerns a police arrest.
The Head of BitConnect for India, Divyesh Darjit, was arrested on his way back to India from Dubai by the immigration officers at Delhi airport. The Head was identified to be a resident of Surat.
The accused was then taken to Gandhinagar and the case is currently being investigated by the Gujarat Crime Investigation Department [CID]. Gujarat CID stated that a case is filed against everyone involved in the BitConnect scam including the owner, promoters, and administrators for cheating due to a complaint filed by a local investor.
BitConnect became the most popular in the cryptocurrency space after a promotional video by Carlos Marcos went viral in the community. The exchange platform shut down earlier this year because of accusations of spam and bad publicity. The BitConnect token, BCC, was one of the top tokens in the cryptocurrency market in the month of December 2017.
The company was accused of a Ponzi scheme because of its unrealistic returns which were promised to all the investors. In January 2018, the platform received a cease and desist order from the Texas State Securities Board. Following this, the coin tumbled in the market from $463 to $5 in a matter of few days.
In addition, the company also received a notice from the UK government which stated that if they failed to prove their authenticity within 2 months, they would have to dissolve their business.
LaboratoryOne, a Redditor says:
“This is the most expensive meme in history”
Total_letdown, another Redditor says:
“I truly feed bad for all the people that lost money but I also want to say that I am glad bitconnect happened. Carlos Matos is one of the greatest memes in crypto and his catchphrases will be remembered or years if not decades.”
Watada, a Reddit user says:
“One guy going to jail isn’t exactly justice for the people who lost money to this scam.”
Furthermore, an investor resolved to the abduction of Dhaval Mavani and Piyush Savaliya of BitConnect. The accused was identified as Shailesh Bhatt by the CID. According to the reports, the reason for kidnapping was to recover the money was lost due to the investment in the company. The accused allegedly extorted cryptocurrencies such as Litecoin [LTC], Bitcoin [BTC] and cash.