SEC Indicts BitConnect Founder and Lead US Promoter
- The crypto scam defrauded retail investors for more than $2 billion.

The US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Commission (SEC) has continued its efforts against multi-billion dollar crypto scam BitConnect and brought fraud charges against its Founder, Satish Kumbhani, and its top US promoter, Glenn Arcaro and his affiliate.
This action came after the market regulator settled charges with another three US BitConnect promoters last month for a hefty disgorgement amount and fine.
The scheme created a network of promoters around the country to spread the word about the fraudulent scheme. Arcaro was the lead national promoter of BitConnect and lured investors through his website, Future Money. He has already pled guilty to other criminal charges against him.
Traping Investors with False Claims
The regulator filed the latest complaint at the United States District Court in the Southern District of New York and alleged that the defendants sold unregistered securities in a fraudulent offering from early 2017 through to January 2018. In addition, it mentioned BitConnect’s false promise of deploying trading bots to generate profits.
The SEC pointed out that Bitconnect and Kumbhani siphoned the proceeds to the wallets controlled by them and used the funds for their own benefits.
The formal complaint charged all the defendants for violating the antifraud and registration provisions of the federal securities laws. The SEC is now seeking injunctive relief, disgorgement and civil penalties.
Commenting on the case, Lara Shalov Mehraban, Associate Regional Director of SEC's New York Regional Office, said: “We allege that these defendants stole billions of dollars from retail investors around the world by exploiting their interest in digital assets. We will aggressively pursue and hold accountable those who engage in misconduct in the digital asset space.”
The US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Commission (SEC) has continued its efforts against multi-billion dollar crypto scam BitConnect and brought fraud charges against its Founder, Satish Kumbhani, and its top US promoter, Glenn Arcaro and his affiliate.
This action came after the market regulator settled charges with another three US BitConnect promoters last month for a hefty disgorgement amount and fine.
The scheme created a network of promoters around the country to spread the word about the fraudulent scheme. Arcaro was the lead national promoter of BitConnect and lured investors through his website, Future Money. He has already pled guilty to other criminal charges against him.
Traping Investors with False Claims
The regulator filed the latest complaint at the United States District Court in the Southern District of New York and alleged that the defendants sold unregistered securities in a fraudulent offering from early 2017 through to January 2018. In addition, it mentioned BitConnect’s false promise of deploying trading bots to generate profits.
The SEC pointed out that Bitconnect and Kumbhani siphoned the proceeds to the wallets controlled by them and used the funds for their own benefits.
The formal complaint charged all the defendants for violating the antifraud and registration provisions of the federal securities laws. The SEC is now seeking injunctive relief, disgorgement and civil penalties.
Commenting on the case, Lara Shalov Mehraban, Associate Regional Director of SEC's New York Regional Office, said: “We allege that these defendants stole billions of dollars from retail investors around the world by exploiting their interest in digital assets. We will aggressively pursue and hold accountable those who engage in misconduct in the digital asset space.”