BitConnect Founder Charged By The DOJ

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Hey, hey, hey

Wassa wassa wassa wasssa wassaaaup Bitconnect.

Arguably the best thing to ever come out of the shitcoin space has to be the series of bitconnect memes. Sure it cost investors billions but what we got back in laughs is priceless. Back in 2017, Ponzi's were everywhere, all you had to do was spin up an ETH smart contract from a GitHub repository and bobs your uncle, you're in business and you can raise a bunch of money and disappear into the night sky.

The rug pulls were far more instant and frequent, as people knew very little about how this technology works. Now, the rug pulls are still there, they're just a little smarter, but have not slowed down, only pivotted.

I am sure there will be many a story coming out of 2021-2022 scams, off the top of my head I can think of wormhole, squid game token and save the kids, but those are stories for another time.

Anyway, back to Bitconnect, the Ponzi was a massive story with many promotors getting called in for questioning, some were sued, and others just went into hiding.

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Bit CON artist

The U.S. Department of Justice announced Friday that a big part of the story was finally coming to an end. A federal grand jury charged the BitConnect founder Satish Kumbhani with defrauding investors of some $2.4 billion.

Kumbhani had been on the run for years and many thought he would never get his day in court, but the DOJ was not going to sleep on this one. Many Americans were caught up in this scandal, so there was a keen motivation to get the head of the operation.

Kumbhani got quite an impressive list of charges such as conspiracy to commit wire fraud, wire fraud, conspiracy to commit price manipulation, operating an unlicensed money transmitter, and conspiracy to launder funds internationally for "orchestrating a global Ponzi scheme"

Bitconnect is also said to have allegedly traded cryptocurrencies using his investors' funds, and repaid earlier investors with the funds he received from later investors. All but confirming it is a total ponzi.

Amazing how you need so much information to confirm it's a scam, but that just shows you now a lot of the tokens you probably hold today are scams, you just don't realize it yet.

While the DOJ did get the head of the snake, I am sure there are still lower management and a few promotors that made off with big bucks, that will also be pulled in, now that you have the head of the organization its only a matter of time before he rats out his crew.

Riding on the tails of bitcoin

The reason BCC or Bitconnect was able to get so big and run for such a long time was through the timing. It was in operation during a bitcoin bull market, making it easier to make money creating more BCC and getting people to swap BTC for it, then using that BTC to trade and return back dollars to customers.

The bull market hid a lot of financial fuckery but as soon as bitcoin's run ended, and maximum pain could be inflicted it turned down.

Turned down for what?

To rek a generation of noobs that's what.

We all had to learn the hard way and some of us paid the price and turned to the books and started to learn and get bitcoin. While others continue to jump from token to token hoping to hit black or red at the roulette table.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

Let's connect

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16 comments
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I am sure there will be many a story coming out of 2021-2022 scams

Can't wait to see which coins are the Bitconnect 2.0

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I am sure there will be quite a few the amount of overconfidence in the space needs a good humbling

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Last time it was the ico's.
This time its the play to earn games.

Everybody is pumping money into prerelease games in the hope of doing an axie or splinterlands but most will never even see a nft from them.

People are just buying land and cards for games with no research and expecting it to jump massively just like the last time around.

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Play to earn, DEFI, NFTs and DAOs, plenty of rug pulls coming from all of those,

Regarding these PTE games its all about funding, Splinterlands got 3.6 million while Axie is up to 9 million and with both games burning runaway to acquire users they'll continue to fund up rounds without needing to make a profit.

If they'll reach a sustainable scale, who knows, but most VCs funded overcapitalised zombies, used to exit on retail either by IPO or selling to a company, it's not about building anything of value

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Have you come across CashFX? Looks like a ponzi to me but a friend of mine is really into it and, so far, she's received all payments owed and so have the people she recruited. I said my piece about it when she offered me the opportunity of joining in but she thinks it's great and her experience so far supports that.

Just wondered if you'd come across it.

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Yes I have heard of it, I've seen a few South Africans falling for the scam, the pitch is they get 10% a week returns which they think is reasonable but it's totally unsustainable its 14104.293% if you work it out annually which is impossible to hold and greed is getting the better of early adopters who keep reinvesting

It will collapse sooner or later, but these things can go on for years as they can continue to recruit people in different countries, the fact that they coming to a country like South Africa, it just shows how they running out of suckers

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Yeah. It didn't look good to me so I stayed well away. My friend is ramping up her recruiting as, so far, it's done well for her.

The initial attraction was that she saw it as an easy way to get involved in crypto and get some BTC and now she's just enjoying the returns.

I offered to help her get into DCA BTC but her experience is that it's all working out well.

Maybe she will time it just right to get out. 😁

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I hope for her sake too, but even if she gets out, you are shilling unregistered financial products without a license so there's an easy case for civil action against her, from all of her referrals, so big risks there.

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It was pure greed. I knew members of the Silver Stacking Community getting involved with BitConnect around one Stacker that was doing the cheer leading. A fellow whose YouTube Channel used to be 100% on Precious Metals in a short time went 100% into Crypto. After the disaster, his name was MUD and a lot of hate went to his direction. I never got sucked into it, I strongly felt that there was something fishy about it and went back to claiming faucets.

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Anything that offers 8% APR my blinkers already fire off since that range would effectively solve a lot of the world's problems an error no one has been able to correct. Bitconnect was offering somethign silly like 15% i can't remember, but it was EVERYWHERE I remember the youtube ads going nuts

Thankfully like you I never bought any of it, I was still a noob at the time lol couldn't buy it even if I wanted to I didn't know how, I was still finding my way around bitcoin.

It's a great filter to see what kind of people you're dealing with I suppose, and glad when people who are shilling scams get their day

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What's really sad are the now 100+ other shitcoin scams that people are launching out the floodworks on. They some how get away with it though for the most part unless they get large enough that it's "worth" going after them.

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Yeah if you're a small enough rug pull you're not worth going after, they have to do real damage to be taken to task, so many people will lose money in these smaller rug pulls

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A lot of people definitely are falling for scams, with so good to be true promises. I am glad I have never fallen for one, so far. Thanks for sharing!

!1UP

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I hope you never do, but having been here since 2016 I know they’ll get you eventually I bought a few nothing ICO projects lol had to learn my lesson the hard way

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