A promoter of the controversial cryptocurrency platform BitConnect was arrested on August 19, in accordance to a neighborhood news outlet in India.
Previous BitConnect India head Divyesh Darji was arrested at Indira Gandhi Intercontinental Airport in New Delhi on Sunday, the India Convey documented. The Prison Investigation Section of Gujurat law enforcement declared they arrested Darji right after receiving an alert from the nation’s immigration company.
According to P. G. Narwade, an inspector from the law enforcement section, Darji was en route from Dubai to the city of Ahmedabad when he was arrested.
“The accused held seminars, activities in India and other nations promising significant fascination — daily fascination charge of 1 % — on investment in BitConnect cash. The charge of a person BitConnect coin on January 16, 2018, when the enterprise shut down, was USD 362.”
As CoinDesk documented, BitConnect’s lending provider was shut down this earlier January right after regulators in Texas and North Carolina said the enterprise was engaging in the sale of unregistered securities tied to a token sale. The shutdown resulted in the startup’s BCC token’s price tag crashing, slipping from its significant of $400 at the commencing of the calendar year to $17.25 on Jan. 17. The token is buying and selling below 70 cents as of press time.
In addition to the unregistered stability sale, BitConnect was also infamously accused of conducting a Ponzi scheme, especially right after many prominent figures in the crypto group levied criticisms from it, together with the founder of ethereum, Vitalik Buterin.
Right after the platform’s shutdown, former BitConnect trader and promoter Trevon James said the FBI experienced started investigating the challenge, in accordance to a YouTube video clip he posted in March.
Law enforcement vehicle picture by means of Shutterstock