BitConnect

BitConnect, founded in 2016 by Satish Kumbhani, ran a "Lending Program" from late 2016/early 2017 until January 2018 that promised returns of up to 40% per month from a purported "volatility software trading bot." Per the SEC and DOJ, no such trading occurred: earlier investors were paid with later investors' funds — a textbook Ponzi — while operators siphoned deposits to wallets they controlled. Its BCC token hit a peak market capitalization of about $3.4 billion before the platform abruptly shut down in January 2018.

The SEC charged BitConnect, Kumbhani, and top US promoter Glenn Arcaro on September 1, 2021, describing a $2 billion fraudulent unregistered offering (it had sued five other US promoters in May 2021). On February 25, 2022, a federal grand jury indicted Kumbhani on wire fraud, commodity price manipulation conspiracy, unlicensed money transmitting, and international money laundering conspiracy charges over approximately $2.4 billion taken from investors (the DOJ criminal figure; the SEC civil complaint cited $2 billion). Kumbhani, facing up to 70 years, has never been located — the DOJ says he remains at large, and he is also wanted in India.

Arcaro pleaded guilty in September 2021 and was sentenced in September 2022 to 38 months in prison for his role in the scheme, which reportedly defrauded at least 4,500 people in some 95 countries. The DOJ sold $56 million in seized crypto in 2021, and on January 12, 2023 announced distribution of $17,646,801 in restitution to about 800 victims in more than 40 countries.

The case remains live in India: the Enforcement Directorate announced seizure of roughly 16.5 billion rupees (~$190 million) in crypto plus cash and a Lexus in February 2025, and in January 2026 arrested two men (Nikunj Bhatt and Sanjay Kotadia) under the Prevention of Money Laundering Act, freezing about Rs 19 crore more, with roughly Rs 270 crore attached across the probe.

Sources: [SEC press release 2021-172](https://www.sec.gov/newsroom/press-releases/2021-172), [DOJ/IRS-CI indictment of Kumbhani](https://www.irs.gov/compliance/criminal-investigation/bitconnect-founder-indicted-in-global-2-point-4-billion-cryptocurrency-scheme), [DOJ $17.6M restitution announcement](https://www.irs.gov/node/118171), [CoinDesk: India ED seizes $190M (Feb 2025)](https://www.coindesk.com/policy/2025/02/17/india-s-directorate-of-enforcement-seizes-usd190m-in-bitconnect-fraud-case), [ED arrests two in BitConnect case (Jan 2026)](https://www.prokerala.com/news/articles/a1721278.html)

**Official action:** DOJ indictment of founder Satish Kumbhani Feb 2022 (fugitive); SEC fraud charges Sept 2021; promoter Glenn Arcaro sentenced 38 months Sept 2022 with $17.6M restitution distributed Jan 2023; India ED seizures 2025-26