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ARTICLE · 01 OCTOBER 2021

BitConnect Enforcement Actions Demonstrate SEC And DOJ's Regulatory Authority In Cryptocurrency Arena

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On September 1, 2021, the US Securities and Exchange Commission filed suit against several individuals and entities associated with the now-shuttered cryptocurrency exchange platform BitConnect...

United StatesTechnology
Ryan P. Holmes
Ryan P. Holmes
Suneeta Hazra
Suneeta Hazra
Valarie Hays
Valarie Hays
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On September 1, 2021, the US Securities and Exchange Commission filed suit against several individuals and entities associated with the now-shuttered cryptocurrency exchange platform BitConnect, including its founder, Satish Kumbhani, and its chief promoter in the United States, Glen Arcaro. The lawsuit alleges that Kumbhani and his associates defrauded thousands of investors of nearly $2 billion in cryptocurrency in what the SEC calls a "Ponzi-like" scheme. This filing, coupled with a criminal case against Arcaro brought by the Department of Justice and an earlier SEC civil enforcement action against a group of lower-level promoters, should put cryptocurrency players on notice that the SEC and DOJ are growing increasingly comfortable working in tandem to use traditional enforcement tools in the cryptocurrency arena.

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