The U.S. Securities and Exchange Commission (SEC) on Wednesday sued the founder of the now-defunct cryptocurrency exchange platform BitConnect for allegedly poaching a staggering $2 billion from retail investors from the United States and abroad. It is believed to be the largest cryptocurrency fraud to be criminally charged.
BitConnect founder Satish Kumbhani, 35, an Indian citizen from Surat, has been slapped with charges of illegally touting BitConnect’s unregistered offering from January 2017 to January 2018, Reuters reported.
The SEC also charged Glenn Arcaro, 44, of Moorpark, California, with fraud, claiming his firm Future Money Ltd received more than $24 million in “referral commissions” and “development funds” while promoting BitConnect from August 2017 to January 2018.
The top U.S. securities regulator is seeking fines and the recouping of ill-gotten gains from the cryptocurrency investment scheme in…