Alleged Bitconnect crypto exchange India head, Divyesh Darji, was arrested at the airport in Delhi as he reached from Dubai. He and schemers are accused of luring millions of dollars (Rs 88,000 crore) from Indian investors looking to find financial refuge throughout the government’s demonetization campaign.
Darji’s outfit was listed in the United Kingdom but fundamentally operated from the Burj Khalifa tower in Dubai. It was an effort to inhibit the growing Indian black market, which the government claimed was funding illegal activity and terrorism. But the rollout was unexpected, instant, and typically ham-fisted.
Bitconnect’s claims were dynamically protected by participants, however, the whole scheme misshapen. Indian promoters mostly bailed, going abroad after investigations were launched by Indian authorities. Well-known personalities and politicians were even caught up. Satish Kumbhani, Dhavl Mavani and Suresh Gorasiya are few of the schemers mentioned as well.
The company was registered within the UK and had a workplace in Surat. They launched their very own ‘bitconnect cash’ quickly after demonetization. They promoted the corporate on social media and by holding gala capabilities in cities internationally. Kumbhani and other investors in Gujarat, India dispensed Bitcoin worth $4 billion into Bitconnect crypto exchange, which was started in December 2016.
The company continued to remain active till January 2018. It released 3 crore coins, out of which 2 crore coins were sold to the depositors. The accused had held seminars, events in India and other nations assuring a very high-interest and daily interest rate of 1 percent. Also, the suspect had guaranteed to double the investor’s money in just 60 days in exchange for Bitcoin. At present 180 bitcoins has been recovered and 9 kg of gold from the suspect.
As revealed in News Bitcoin, after the value of BCC (Bitconnect’s token currency) stopped to $3 overnight, BitConnect proclaimed it would shut down its crypto exchange and loaning operation in India.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]