BitConnect: a Ponzi scheme behind a "trading bot"
BitConnect promised daily profits from a "trading bot" and collapsed in January 2018. US prosecutors charged its founder with running a Ponzi scheme of about $2.4 billion; he remains a fugitive.
Last reviewed: 15 October 2026
- Period
- 2016 – January 2018
- Losses
- About $2.4 billion, according to US prosecutors.
Red flags
- Daily profits from a "trading bot" or "volatility software"
- Investment had to go through the company's own token
- Multi-level referral commissions
How it worked
Investors put money into BitConnect's "lending programme" and were told a secret "trading bot" and "volatility software" would generate daily profits. US prosecutors allege the software produced no such profits, and that earlier investors were paid with later investors' money.
Legal consequences
In February 2022 a US grand jury indicted founder Satish Kumbhani. According to the Justice Department he remains at large. The company's top US promoter pleaded guilty and was sentenced to prison.
The lesson
Claims of guaranteed daily profits from a "bot", "AI" or "algorithm" cannot be verified, and that is exactly what makes them useful to fraudsters.
Sources
This page is based on allegations and reports published by the sources cited; allegations are unproven until a court rules. Tell us if anything is inaccurate.