This whole scenario of Bitconnect fraud started back during the demonetization implementation in India back in year 2016 when government banned the 500 and 1000 Rupee existing notes (Rupee-Fiat Currency In India). Though this step was taken by the Indian government to strangle the illicit black market and terrorism funding in the country with a sudden and an immediate implementation but at the same time it also created a much large number of panicking investors searching to find some financial aid during that time. Here is when Bitconnect steps in as a financial refuge bilking around more than Eighty Five Thousand Crore (85,000 Crore) from its investment scam with its plan promising investors to keep their assets (certainly the illicit one) in bitcoin which would be more secure and unnoticed by the regulatory authorities became successful at that time.
The master planner behind this fraud scheme ‘Divyesh Darji’ was recently arrested by the official along with other well known personalities previously arrested such as Satish Kumbhani, Dhavl Mavani, and Suresh Gorasiya. Everything narrated by the Bitconnect during its appraisals was all fraud promising investors huge profits and returns with its operational office held at Burj Khalifa in Dubai. The company was though registered from U.k. but had most of its working from India only. Well known personalities Satish Kumbhani, Dhavl Mavani, and Suresh Gorasiya are some of the conspirators mentioned as well.
DGP ‘Ashish Bhatia’ in this matter stated that:
“The firm was registered outside India, somewhere from U.K. with its office in Surat where they launched their own ‘digital coins’ very soon after demonetization. They promoted themselves on several social media platforms and by sponsoring many get-togethers across the world. They further scammed the investors with the promise of more than 50% monthly interest, and referral interest.”
As reported by EtherDesk earlier, Bitconnect is the same firm in which Shailesh Bhatt invested more than 1.5 crore and to recover his loses he illegally kidnapped the two corporate officials of Bitconnect named ‘Dhaval Mavanj’ and Piyush Savaliya.’