Over 800 BitConnect Crypto Ponzi Scheme Victims To Get $17,000,000 In Restitution, According To U.S. Department Of Justice

More than 800 victims of the collapse of the BitConnect crypto Ponzi scheme will receive $17 million in settlements, according to the U.S. Department of Justice.

A federal district court in San Diego on Thursday ordered the restitution, which will be distributed to victims in more than 40 countries.

BitConnect has been marketed as an online crypto investment program that uses proprietary technology to generate high returns, but US securities regulators say the operation is a Ponzi scheme that has defrauded billions of dollars from investors. It closed in 2018.

Glenn Arcaro, the lead developer of US-based BitConnect, pleaded guilty to conspiracy to commit wire fraud in September 2021. A federal grand jury in San Diego indicted the founder of the investment program, Satish Kumbhani, last February .

According to the indictment, Kumbhani ordered the promoters of the loan program to manipulate the price of the BitConnect Coin (BCC) to create the impression that there was market demand for the BitConnect digital asset.

Kumbhani and his conspirators also allegedly hid and moved investor funds by moving assets across cryptocurrency exchanges on an international basis using a number of cryptocurrency wallets.

Furthermore, Kumbhani allegedly avoided BitConnect scrutiny and supervision by failing to comply with financial industry regulations, such as by failing to register with the Financial Crimes Enforcement Network (FinCEN) as required by the Bank Secrecy Act.

Don’t miss a beat – sign up for crypto email alerts delivered straight to your inbox

Check out the price action

Follow us on ChirpingFacebook and Telegram

Navigate the daily Hodl mix

Check out the latest news headlines

&nbsp

Disclaimer: Opinions expressed in The Daily Hodl are not investment advice. Investors should do due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and that any losses you may incur are your own responsibility. The Daily Hodl does not advise the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl participates in affiliate marketing.

Image generated: Mid-journey

Add a Comment

Your email address will not be published. Required fields are marked *