Home cryptocurency Head of Bitconnect Cryptocurrency, Arrested by Indian Authorities

Head of Bitconnect Cryptocurrency, Arrested by Indian Authorities

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Bitconnect cryptocurrency
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According to a news outlet from India, the head of a cryptocurrency platform called ‘Bitconnect ‘ was arrested that August 19.

Divyesh Darji who is the head of the cryptocurrency platform, was arrested at Indira Gandhi International Airport in New Delhi on Sunday.

The Criminal Investigation Department of Gujurat police announced that they arrested Darji after receiving an alert from the nation’s immigration agency.

P. G. Narwade who is an inspector from the police department in Gujurat, revealed that Darji was en route from Dubai to the city of Ahmedabad when he was arrested.

He further said:

The accused held seminars, events in India and other countries promising high interest — daily interest rate of 1 percent — on investment in BitConnect coins. The cost of one BitConnect coin on January 16, 2018, when the company shut down, was USD 362.”

Why was Bitconnect Cryptocurrency Shut Down?

Firstly, Bitconnect Cryptocurrency was shut down because regulators in Texas and North Carolina said the company was engaging in the sale of unregistered securities tied to a token sale. The shutdown resulted in the startup’s BCC token’s price crashing, falling from its high of $400 at the beginning of the year to $17.25 on Jan. 17. The token is trading below 70 cents as of press time.

Secondly, aside from its unregistered security sale, it was also accused of conducting a Ponzi scheme.

Those who did not fall or got scammed by this scheme are very happy because it seems from the very on start, Bitconnect offers was just too good to be true.

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