US States Ask Indian Authorities to Seize Property of Former BitConnect Leaders

 In Exchanges

The Indian CID authorities are widening their investigation into the fallout from the BitConnect scheme.

Two US states, Illinois and Arizona, have called the Indian CID authorities with a request to seize the assets of former BitConnect leaders, reported The Times of India. India has become one of the biggest markets for BitConnect, as crypto assets gained popularity after the de-monetization of the country starting in 2016.

US state authorities were among the more active agents in stopping the BitConnect scheme. The beginning of the end for BitConnect was a cease-and-desist order from the state of Texas. The argument of the state authorities was that BitConnect agents and promoters were selling unregistered securities, and themselves lacked the credentials to offer investment products.

Whether BitConnect coins were indeed securities has not been discussed in depth, but was needless, as soon after the Texas intervention, BitConnect went into a freefall, losing all its value. Recently, BCC coins were delisted with a price of around $0.67, compared to peaks at $509.99 on December 17, 2017.

The Indian authorities’ investigation found that BitConnect leaders Divyesh Darjani and Satish Kumbhani started promoting the scheme actively from December 2016, promising 800% annual returns by receiving interest. Darjani was arrested at the Delhi airport at the end of August, but Kumbhani is still at large. He is suspected to be in Dubai and holding a significant amount of Bitcoin (BTC) from investors.

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At the same time, one of the most prominent BitConnect promoters in the USA, Trevon James, continues to use social media, and even offer investment opportunities. In the latest tweet, James asks for Bitcoin investments for a scheme he is willing to reveal through personal messages:

https://twitter.com/btctrevon/status/1039355532539297792

James was scheduled to testify before the US Securities and Exchange Commission this September 10, though there is still no report on the results of the testimony. On September 10, James tweeted, wearing a BitConnect T-shirt:

https://twitter.com/btctrevon/status/1039149564270456832

BitConnect proponents go as far as to blame the crash of the entire crypto market on the unraveling of the pyramid scheme, and claim that the crypto world lost valuable ambassadors.

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