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Sen. Brown on cryptocurrency: Fraud, scams and outright theft
02:35 - Source: CNN
New York CNN  — 

A federal grand jury in San Diego indicted the founder of BitConnect for allegedly orchestrating a $2.4 billion global Ponzi scheme, the Justice Department said Friday.

Satish Kumbhani, 36, is accused of misleading investors about the cryptocurrency’s “lending program,” where he claimed the proprietary technology would bring substantive returns to investors by tracking cryptocurrency exchange markets.

“As alleged in the indictment, however, BitConnect operated as a Ponzi scheme by paying earlier BitConnect investors with money from later investors,” the Justice Department said in a statement. Kumbhani and his co-conspirators allegedly made about $2.4 billion in the scheme.