One of the backers of BitConnect Asia, was arrested on 18 August in Delhi. The authorities suspect that Divyesh Darji was running the Asian branch of the deceitful platform until the authorities closed it. BitConnect has managed to one of the world’s most successful tokens until the regulators discovered that it was a pyramid scheme.
One of the leading minds of BitConnect Asia was arrested last Saturday in an attempt to enter India. According to the news, the immigration officers detained Divyesh Darji at Delhi airport. Investigators refer to him as one of the masterminds of the crypto start-up.
While the platform was active, investors could lend money to third parties, after which they were repaid depending on their options a 100 percent guaranteed profit. According to BitConnect Asia, crypto bots were importing the required funds. Shortly after its beginnings in February 2016, many people were speculating that the payouts could only be made as long as there were enough new customers who in turn invested money.
After the announcement of the cancellation of the lending option which was the only feature of the platform lost the token over 90 percent of its value.
So far, it is unclear if the affected users could get back at least a portion of their deposits. However, the authorities are still a long way from unveiling the full details of the operation. It is speculated the total loss was at around $771,000.