Head of Bitconnect’s Ponzi Scheme Arrested in India
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Aug. 20, 2018

At the airport in Delhi, the immigration service has detained Divyesh Darji, who presumably headed the promotion of Bitconnect's cryptocurrency Ponzi scheme in India, and once again traveled to this country from Dubai. According to the Department of Criminal Investigation of the State of Gujarat, Darji is accused of having conducted seminars and participated in other events where he tried to involve new participants in the investment scheme, promising them incomes at the level of 1% per day from the contribution to the project's cryptocurrency.

Although the Bitconnect platform closed in January this year, an investigation regarding Darji and his accomplices has begun only after the fall of Bitconnect caused the anger of many deceived investors, one of them, who invested 18 million rupees (about $260,000), stole the “company’s” and extorted a ransom of 30 times more of its investments.

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Recall that a week ago, the only crypto exchange on which the BitConnect token (BCC) continued to be traded, announced its delisting.

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WHY IS IT IMPORTANT?

  • Against BitConnect filed a class action lawsuit in which investors said they lost $770,000.
  • In another lawsuit, the defendants were accused of creating a financial pyramid and deceiving thousands of residents of Kentucky and other states of America.
  • The project was closed in early 2018. In addition to the complaints of numerous investors, many well-known personalities in the crypto industry have confirmed that BitConnect is a financial pyramid. According to law enforcement agencies, the damage from the actions of swindlers in India alone amounted to about 88 million rupees.
  • It's also worth noting that the CEO of Bitconnect John Bigatton is suspected of killing his wife.
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