The Securities and Exchange Commission accused BitConnect and its founder, Satish Kumbhani, of a $2bn fraud that misused bitcoin raised from investors worldwide. An American promoter for the scheme, Glenn Arcaro, pleaded guilty in federal criminal court over his role in fleecing US investors.

BitConnect sold its own digital asset in 2016 in exchange for bitcoin, the world’s most valuable cryptocurrency. BitConnect said it had an automated program that would make money by trading the contributed bitcoin. Profits would be shared with investors through interest payments.