Divyesh Darji – the man behind the unbelievable crypto pyramid scheme scam called BitConnect (BCC), now is sitting in jail, as he was returning from Dubai. He and his team was scamming millions of dollars from naive Investors.
Gujarat Police department comments
“Darji was living in Dubai. A look-out circular was issued against him. The Immigration Department alerted us when he was on the way from Dubai to Ahmedabad, after which he was arrested today evening. The company came into existence in 2016, and in 2017, it launched the BitConnect coin. It remained active till January this year. […] 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 $362”, said the inspector P G Narwade of Criminal Investigation Department (CID-Crime) of Gujarat police.
“When this information emerged, Kumbhani and other BitConnect promoters came under the CID’s scanner. In January this year, Kumbhani and other promoters suddenly closed the exchange and became untraceable. Investors lost money as they could no longer withdraw or trade their BCC tokens or coins”, the CID said.
These are all good news, since I believe, the former investors are actively following the court process of BitConnect. And news like these are sending a good message to other past crypto scams. They might receive their judgement as well. At least now they (investors) can sit with a hope that BitConnect will receive a punishment they deserve.
The lawsuit which was initiated in July 24th states that BitConnect issued crypto tokens that were unregistered securities, and obtained additional funds through a wide ranging Ponzi-scheme. The lawsuit was filed by 6 individuals who claim to have lost around $771,000.
BitConnect and its affiliates used Youtube to spread their fraudulent investment scheme through videos. Youtube has failed to delist and demonetize the published videos. The top ten affiliates had posted more than 70,000 hours of unedited content which generated around 58 million views.
“This case is not about YouTube being the speaker or publisher of the content on its website. Instead, liability is predicated on YouTube’s failure to act after learning from content directly published on YouTube of the readily foreseeable harm posed by its advertising partners… As the old saying goes: Sometimes when you lie down with dogs, you get fleas” said David Silver of Silver Miller, the firm which represents the 6 individuals in the lawsuit.
The plaintiffs are sure that if Youtube had developed an appropriate search of its databases, it probably would have delisted the harmful activities of BitConnect videos.
The document which has been filed in court, concludes:
“YouTube failed as a gatekeeper to protect its users from, and warn its users of, the very harm YouTube set out to prevent with its advertising protocols and proprietary algorithms.”
https://goo.gl/d3aMw2 – court documents
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