BitConnect tied to Indian demonetization, three owners on the run

May 24, 2018 mlmdetective 0

It appears BitConnect, a Ponzi scheme with losses potentially running into the billions, was launched to skirt newly introduced demonetization law in India.On November 8th, 2016, the Government of India announced the demonetization of all ₹500 and ₹1000 banknotes.
The government claimed that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism.
The sudden nature of the announcement and the prolonged cash shortages in the weeks that followed created significant disruption throughout the economy.
If CID investigators are to be believed, this triggered the launch of the  BitConnect Ponzi scheme.
CID officials…

Kidnapping and extortion escapades in India reveal BitConnect owner?

May 22, 2018 mlmdetective 0

A builder in India has been arrested as part of a Rs. 1.5 billion bitcoin extortion bust ($22.7 million USD).Three months ago local builder Shailesh Bhatt had filed a complaint with the Gujurat Criminal Investigation Department.
In his complaint Bhatt alleged extortion by the Amreli police.
Amreli is a district in Saurashtra, Gujurat.
Upon investigating Bhatt’s complaint, Gujurat CID agents discovered
Bhatt had extorted bitcoins worth crores from others before he was kidnapped by the Amreli police.
Kidnapped? Yeah… this gets messy.
Two years ago another man, Satish Kumbhani, began promoting the BitConnect Ponzi scheme across Gujurat.
The builder, Shailesh Bhatt, was one of the victims that fell…

Bankruptcy default granted against Frank Dilullo, up for damages

May 1, 2018 mlmdetective 0

Before he turned to the MLM cryptocurrency niche to scam people through, Frank Dilullo ran a Ponzi scheme through his failed Holey Donuts venture.As part of Chapter 7 proceedings, a court-appointed bankruptcy Trustee sued Dilullo for running a Ponzi scheme.The Holey Donuts Ponzi scheme saw Dilullo (right) continue to solicit new investors even though he knew the company was insolvent.As alleged by the Chapter 7 Trustee;In essence, Dulillo was engaged in a Ponzi scheme, using sales to new investors to pay off, in whole or in part, old investors and himself.As part of adversary proceedings in the bankruptcy case, the Chapter…

BitConnect investor alert issued in Ontario, Canada

April 18, 2018 mlmdetective 0

Three months after its collapse, the Ontario Securities Commission has issued an investor warning against BitConnect.BitConnect’s collapse was one of the more spectacular MLM cryptocurrency implosions, wiping $2.4 billion dollars off the BCC market cap.BCC is currently at $1.36 and still being traded (albeit less than $10,000 a day), which might have something to do with the Securities Commission’s alert.BitConnect manages the websites and, where it claims to operate an online exchange platform known as the BCC Exchange.These sites offer multiple investment opportunities that include “mining”, “trading” and “staking” BitConnect Coin, which is also known as BCC Coin.BitConnect also claims…

Seventh BitConnect class-action voluntarily dismissed (California)

March 16, 2018 mlmdetective 0

On February 22nd Baltazar Avalos filed a proposed class-action lawsuit against BitConnect.In the lawsuit Avalos sought to hold defendants BitConnect, Joshua Jeppesen, Glenn Arcaro, Trevon Brown (aka Trevon James), Ryan Hildreth, Craig Grant, Nicholas Trovato (aka CryptoNick) and Ryan Maasen liable for $110,000 in losses.On March 14th Avalos informed the Californian Northern District Court he was voluntarily dismissing the case.Why Avalos has opted to dismiss his case is not stated in the filing.The dismissal was recorded without prejudice however, meaning Avalos is free to refile at a later date.Outside of being paid off (which would be strange given the number of…

ICO Ponzi promotion on YouTube leads to calls to Miami police & FBI

March 15, 2018 mlmdetective 0

One of the larger channels still promoting ICO lending Ponzi schemes on YouTube is “Team US Crypto Baller”.Starting out with BitConnect, as many did, since the Ponzi scheme’s collapse the Team US Crypto Baller channel has been used to promote numerous ICO lending Ponzis, most of which have since collapsed.It was recently revealed that the owner of the Team US Crypto Baller channel is Francesco Dilullo.Prior to getting into Ponzi promotion on YouTube, Dilullo was the CEO of Holey Donuts.Dilullo touted his experience as a professional donut chef. He even grew up in the back of his father’s donut shop and…

Top BitConnect investor contemplates prison time

March 3, 2018 mlmdetective 0

When I checked the various BitConnect lawsuit case dockets a few days ago, other than a preliminary injunction granted against Ryan Maasen, there wasn’t anything significant to report on.Behind the scenes though, BitConnect’s biggest promoters appear to be preparing for the worst.Tracking the activity of BitConnect’s top US investors has proven challenging, owing to the mass-deletion of evidence.Under the pretext of having nothing to worry about, Craig Grant and Trevon James were the only two investors who continued to front their victims.Over the past week that sentiment has changed, following the deletion of anything BitConnect related from both Grant and James’…

Preliminary injunction granted against Ryan Maasen (BitConnect)

February 28, 2018 mlmdetective 0

A preliminary injunction has been granted Ryan Maasen in the filed Kentucky BitConnect class-action lawsuit.For those keeping track this is the Paige lawsuit, filed in Kentucky on January 29th.A Temporary Restraining Order was previously in effect, now replaced by the preliminary injunction granted on February 26th.As per the preliminary injunction and based on submitted evidence, the court foundBrian Paige (plaintiff) and the Class has shown a strong likelihood of success on the merits of their claims for violations of Federal securities law, Kentucky security law, breach of contract and fraudulent inducement.The entry of a preliminary injunction against Ryan Maasen is in…

Seventh BitConnect lawsuit filed in California ($110,000 in losses)

February 25, 2018 mlmdetective 0

A seventh lawsuit has been filed against BitConnect and several of its top promoters.Baltazar Avalos filed his class-action lawsuit on February 22nd in California’s northern district.Named as defendants in the suit are BitConnect, Joshua Jeppesen, Glenn Arcaro, Trevon Brown (aka Trevon James), Ryan Hildreth, Craig Grant, Nicholas Trovato (aka CryptoNick) and Ryan Maasen.In his complaint Avalos allegesBitConnect created and operated fraudulent Ponzi/pyramid schemes in the form of the BitConnect Lending Program and the BitConnect Staking Program.Despite being cloaked in technological sophistication and jargon, Defendants operated a century-old fraud that was simple at its core—Defendants paid existing investors with new money from…

TRO denied in broadest BitConnect Florida class-action

February 13, 2018 mlmdetective 0

In contrast to the granting of a Temporary Restraining Order (TRO) against BitConnect in the Kentucky class-action, a Judge has denied essentially the same motion in Florida.On February 5th Defendants Charles Wildes, Franciso Doria, Akiva Katz, James Gurry, Ronald Nelson and Justin Perry filed a motion for an ex parte TRO.On February 8th the motion was denied.In his order Judge Middlebrooks stated the Plaintiffs had ‘failed to show that immediate and irreparable injury, loss, or damage will occur before Defendants are given an opportunity to respond‘.Judge Middlebrooks noted that the Plaintiffs are free to file for a preliminary injunction after service has…