More Investors will receive more than $17million in reparations due to the court order allowing pyramid schemes in the United States. This notorious crypto investment scheme scammed thousands around the world.
Bitconnect Repayments of Millions of US Dollars to Investors From Dozens of Countries
Around 800 victims in more than 40 countries will receive restitution totalling more than $17million. Bitconnect, The US Department This is Justice (DOJ), Announced ThursdayCiting an order of a federal court of district in San Diego. This large-scale crypto investment schemes defrauded thousands worldwide.
The Following the ruling, September 16, 2021. The main US-based promoter for Bitconnect, Glenn Arcaro44-year-old pleaded guilty for conspiracy to commit wire fraud He He admitted that he market Bitconnect’s Initial coin offering and digital currency trading as a lucrative investment to exploit investor interest in cryptocurrency.
Arcaro Investors were misled by him and his associates Bitconnect’s “Lending Program” and its alleged proprietary technology “Bitconnect Trading Bot” And “Volatility Software” These could be used to generate guaranteed returns on investment money that is used to trade in the cryptocurrency exchange markets. .
“In truth, however, Bitconnect operated a textbook Ponzi scheme by paying previous Bitconnect investors with money from later investors. Arcaro and his accomplices ensured that up to 15% of the money invested in Bitconnect went directly into a slush fund that would be used for the benefit of its owner and promoters,” The Justice Department explained.
Glenn Arcaro, Los Angeles Resident was sentenced to 38 Months in a Federal Prison in the USA. September 2022. He Acknowledged that they had won at least $24million from the fraud. At It is now the Justice Department All of the money will be returned to investors or seized by the government. In November The following year was the Department This is Justice Had offered for sale crypto assets worth $56 million seized from Bitconnect.
The Creator of the crypto pyramid Indian National Satish KumbhaniThe indictment was filed against. February 25, 2022 to his crucial role in organizing the $3.4 million fraud scheme In AugustThe Indian The police opened an investigation into Bitconnect A search for its mastermind. If He is found guilty in the United StatesHe would be sentenced to a maximum term of 70 years imprisonment.
Do You think Bitconnect Investors will receive additional compensation in exchange for their losses. Ponzi scheme? Tell Leave a comment in the section below.
