Satish Kumbhani, the architect of the BitConnect Ponzi scheme, has been indicted by a federal grand jury in San Diego. The U.S. Department of Justice announced the indictment, detailing charges that could result in a 70-year prison sentence.

The indictment alleges that Kumbhani and his associates orchestrated a massive fraud, defrauding investors of approximately $2.4 billion. BitConnect operated by paying early investors with funds from later participants, a classic Ponzi scheme structure. After operating for roughly one year, Kumbhani abruptly shut down the lending program.

Following the collapse, Kumbhani allegedly directed promoters to artificially inflate the price of BitConnect Coin (BCC). This manipulation aimed to create the illusion of market demand for the cryptocurrency, masking the scheme's true nature. The charges against Kumbhani include conspiracy to commit wire fraud, wire fraud, conspiracy to manipulate commodity prices, operating an unlicensed money transmitting business, and conspiracy to commit international money laundering.

Kumbhani, an Indian national, is currently considered "at large." The Securities and Exchange Commission revealed in January that Kumbhani fled India years ago and had likely relocated from India to an undisclosed country by October 2021. The SEC has sought assistance from foreign financial regulators to locate Kumbhani and serve him with legal documents. Reports suggest Kumbhani relocated to Dubai in 2018, a jurisdiction known for its limited extradition treaties.

The U.S. Attorney’s Office for the Southern District of California is prosecuting the case. Maximum penalties for the charges include twenty years in prison and substantial fines for wire fraud and money laundering conspiracy. Operating an unlicensed money transmitting business carries a maximum of five years imprisonment. The indictment is expected to become publicly available on the Pacer system early next week.