Indian Police Officials Arrest Major Domestic BitConnect Promoter

The Bitconnect scheme is a stain on the cryptocurrency industry as a whole. Thousands of users have been defrauded in the process. One of the project’s promoters, known as Divyesh Darji, has been arrested over the weekend. Promoting known Ponzi schemes will eventually lead to legal repercussions in one way or another.


Bitconnect Promoter Pays the Price

Scams are nothing new in the world of cryptocurrency. Get-rich-quick schemes bring out the worst in project operators and investors alike. Bitconnect has been one of the bigger Ponzi schemes in recent cryptocurrency history. The project has successfully defrauded thousands of investors, and the company faces multiple lawsuits around the world. Cracking down on such nefarious schemes needs to be a priority at all times.

With Bitconnect now out of the picture, the real battle has only just begun. Police officials around the world are closing the net on anyone associated with promoting this Ponzi scheme. For Divyesh Darji, the head of Bitconnect in India, it has led to his arrest last Saturday. Gujarat CID officials arrested Darji over his involvement in the Bitconnect scheme’s promotional efforts. By purposefully advocating this known scam, Darji enriched himself at the expense of others.

Despite being registered in the UK, Bitconnect has offices all over the world. One of those branches is based in Surat, India. Unfortunately, the scam claimed many victims in India prior to shutting down in January of 2018.

A police spokesman noted:

The company was registered in the UK and had an office in Surat. They launched their own ‘bitconnect coins’ soon after demonetization. They promoted the company on social media and by holding gala functions in cities across the world. They lured investors with 60% monthly interest, and incentives in the form of ‘referral interest.’

Bitconnect

India’s Cryptocurrency Regulation

The arrest of Divyesh Darji is another nail in the coffin of Bitconnect. Other promoters of this Ponzi scheme remain a target for police officials. Some of them are even indicted in the numerous lawsuits filed against the parent company. 

India is currently in the process of regulating cryptocurrency. Despite a blanket ban by the country’s central bank, demand for Bitcoin does not appear to be slowing down. However, there are also a lot of potential scams consumers need to be aware of at all times. Bitconnect is just one example of fraudulent cryptocurrency activity taking place in India over the years.

Arresting individuals such as Divyesh Darji sends a clear message to the industry as a whole. Indian government officials will continue to crack down on nefarious activity. Doing so will strengthen the cryptocurrency industry as a whole. With official regulatory guidelines to be introduced soon, this arrest can be a positive turn of events for Bitcoin in India. A no-nonsense approach will bring more legitimacy to the thousands of cryptocurrencies on the market today.

Were you scammed by Bitconnect? Let us know in the comments below.


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