The head Bitconnect Gives Darji was arrested in India in Delhi airport, on arrival from Dubai. He and his accomplices are accused of misappropriation of millions of dollars to Indian investors seeking financial shelter in the time of the government’s campaign demonetization.
Local media reported that property Mr. Darji was in the United Kingdom, but the main activity was conducted from the tower Burj Khalifa in Dubai. Perhaps there was located the headquarters for Bitconnect. The tallest building in the world could not be better characterize supporters of the famous project, and today recognized as a large-scale Scam. All the promises Bitconnect was ‘huge’: huge profits, huge gains, global conferences and, alas, the biggest drop.
In desperate times people are somehow more inclined to trust promises, although it seems to be the opposite. Theoretically, this is what happened with many Indian investors. At the end of 2016, the government conducted an immediate demonetization banknotes in ₹500 and ₹1000, which led to the cash crisis in the country and has caused a wide public resonance.
It was an attempt to stifle the growing black market of India, who, according to the government, financed by illegal activities and terrorism.
Bitconnect fraudulent statements gave rise to a storm: why keep money in Fiat government currency when the government can just decide in one moment to devalue all savings of the average Indian on a whim?
And it worked. While the market continued to defy even the most irrational supporter of bitcoins at the end of 2017, Bitconnect gaining popularity. However, as soon as there was a small correction, the whole scheme collapsed. Indian authorities have launched an investigation. Famous personalities and politicians even arrested.
The representative of the police Department of Gujarat explained:
“Dari lived in Dubai, but in India was wanted. The immigration Department warned us when he was on his way from Dubai to Ahmedabad, after which he was arrested tonight. The company Bitconnect appeared in 2016 and remained active until January of this year. The defendant conducted seminars in India and other countries, promising a high percentage of income”