(2021)
SEC v. BitConnect
Year
2021
Criminal or Civil
Civil (SEC action); Parallel criminal action by DOJ (Glenn Arcaro)
Year Resolved
TBD
Jurisdiction (Court/State)
United States District Court for the Southern District of New York
Filed By
U.S. Securities and Exchange Commission (SEC)
Penalty/Fine (USD)
Unspecified
Lawsuit Overview
The SEC filed a lawsuit against BitConnect, its founder Satish Kumbhani, and top U.S. promoter Glenn Arcaro, alleging a $2 billion fraud scheme involving an unregistered and fraudulent offering of investments in a crypto “Lending Program.” Investors were misled with promises of high returns via a proprietary trading bot that never existed. Funds were instead misappropriated by the defendants.
Category
Securities Fraud / Crypto Fraud
Notable Individuals Involved
Satish Kumbhani (Founder of BitConnect)
Glenn Arcaro (Lead U.S. Promoter, Future Money site operator)
Lara Shalov Mehraban (SEC official quoted)
Various SEC investigators and supervisors named in the filing
Investor Loss Estimate
$2 billion
Final Outcome
Still pending as of the announcement; however, in a related action, Glenn Arcaro pleaded guilty to criminal charges brought by the DOJ.
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