(Bloomberg) US Securities and Exchange Commission has sued BitConnect founder Satish Kumbhani for raising more than $2 billion from investors without the regulator’s approval.
Kumbhani is sued alongside BitConnect’s promoter Glenn Arcaro in what SEC alleges as improper selling of securities for about a year beginning January 2017.
Through a purported “lending program,” BitConnect is accused of lying to investors that it would generate as much as 40% in monthly returns through its “volatility software trading bot.”
SEC sued five BitConnect promoters in May over the crypto scheme. Arcaro is said to obtain at least $24 million in referral commissions.
BitConnect’s exchange ceased operations in January 2018 following regulators’ accusations of dealing in unauthorized securities and cyber-attacks.
