BitConnect boss accused of $2.4bn fraud has disappeared

Satish Kumbhani, who is accused of scamming people out of $2.4bn in a cryptocurrency Ponzi scheme, has disappeared while evading an American watchdog, a court was told this week.

The BitConnect founder fled his home nation of India and went to ground in another country as the US Securities and Exchange Commission sought to serve a civil fraud lawsuit on him regarding the alleged scam, it is claimed.

“In October 2021, the commission learned that Kumbhani has likely relocated from India to an unknown address in a different foreign country,” Richard Primoff, general attorney at the SEC, said in a letter [PDF] to US federal district Judge John Koeltl on Monday.

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In September, the regulator claimed BitConnect defrauded folks out of billions of dollars by running a Ponzi-like scheme that promised financial returns of up to 40 per cent per month all thanks to its automated crypto-trading bot.

Instead, people’s digital funds were allegedly secretly pocketed by Kumbhani and his associate Glenn Arcaro, who last year pleaded guilty to conspiring to cheat Bitconnect investors. Arcaro faces up to 20 years behind bars. Kumbhani, however, is still at large.

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Source: BitConnect boss accused of $2.4bn fraud has disappeared • The Register

UK Online Safety Bill to require more data to use social media – eg send them your passport

The country’s forthcoming Online Safety Bill will require citizens to hand over even more personal data to largely foreign-headquartered social media platforms, government minister Nadine Dorries has declared.

“The vast majority of social networks used in the UK do not require people to share any personal details about themselves – they are able to identify themselves by a nickname, alias or other term not linked to a legal identity,” said Dorries, Secretary of State for Digital, Culture, Media and Sport (DCMS).

Another legal duty to be imposed on social media platforms will be a requirement to give users a “block” button, something that has been part of most of today’s platforms since their launch.

“When it comes to verifying identities,” said DCMS in a statement, “some platforms may choose to provide users with an option to verify their profile picture to ensure it is a true likeness. Or they could use two-factor authentication where a platform sends a prompt to a user’s mobile number for them to verify.”

“Alternatively,” continued the statement, “verification could include people using a government-issued ID such as a passport to create or update an account.”

Two-factor authentication is a login technology to prevent account hijacking by malicious people, not a method of verifying a user’s government-approved identity.

“People will now have more control over who can contact them and be able to stop the tidal wave of hate served up to them by rogue algorithms,” said Dorries.

Social networks offering services to Britons don’t currently require lots of personal data to register as a user. Most people see this as a benefit; the government seems to see it as a negative.

Today’s statement had led to widespread concerns that DCMS will place UK residents at greater risk of online identity theft or of falling victim to a data breach.

The Online Safety Bill was renamed from the Online Harms Bill shortly before its formal introduction to Parliament. Widely accepted as a disaster in the making by the technically literate, critics have said the bill risks creating an “algorithm-driven censorship future” through new regulations that would make it legally risky for platforms not to proactively censor users’ posts.

It is also closely linked to strong rhetoric discouraging end-to-end encryption rollouts for the sake of “minors”, and its requirements would mean that tech platforms attempting to comply would have to weaken security measures.

Parliamentary efforts at properly scrutinising the draft bill then led to the “scrutineers” instead publishing a manifesto asking for even more stronger legal weapons be included.

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Source: Online Safety Bill to require more data to use social media