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US Government to Sell $56 Million Worth of Crypto to Compensate BitConnect Victims

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Tue, 11/16/2021 - 18:22
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Alex Dovbnya
The confiscated funds will be used to provide restitution to BitConnect victims
US Government to Sell $56 Million Worth of Crypto to Compensate BitConnect Victims
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The U.S. government has received court approval to liquidate $56 million worth of fraud proceeds of the leading BitConnect promoter in order to compensate the victims of the infamous Ponzi scheme, according to a Nov. 16 press release published by the Department of Justice.

The confiscated crypto, which marks the largest recovery for a cryptocurrency-related fraud case in the U.S, remains in the custody of the authorities for now.

Those affected by the sham are being encouraged to submit a victim impact statement.

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Glenn Arcaro, the “number one” promoter and founder of BitConnect, pleaded guilty to federal wire fraud conspiracy in early September.

The fraudster is facing a maximum sentence of 20 years behind bars. His sentencing will take place on Jan. 7, 2022.

As reported by U.Today, the U.S. Securities and Exchange Commission charged five BitConnect promoters with breaking securities laws.

BitConnect, which imploded in early 2018, allegedly scammed a slew of victims out of more than $2 billion.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.