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The US SEC has completed an investigation into the BitConnect cryptopyramid. According to the official charges, its founder Satish Kumbhani embezzled $325 thousand BTC, estimated at today's exchange rate of $15 billion.
In the dock will be the main promoter of the pyramid Glen Arcaro, and six other active participants of the scam.
Given the amount of damage caused, $2 billion at the time of the scam, the US SEC will require a jury trial for the accused. Kumbhani will not be among them, and authorities have not been able to determine his whereabouts.
Arcaro and 4 other people pleaded guilty and actively helped expose the activities of cryptopyramide. In particular, they confirmed the falsity of BitConnect's communications of a stable income of 40% per month on the profits generated by a robot trading the volatility of the BTC exchange rate. In reality, the cryptopyramide paid out profits to the first investors due to the influx of funds from new depositors.
Glen Arcaro's role was to develop a network of promoters in North America, for which he received 15% of each amount raised by this team. The US SEC determined that his actions caused investors $24 million in losses already compensated by the accused.
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The US Department of Justice and the Prosecutor's Office of the Southern District of California sold crypto assets confiscated from the "promoter" of the BitConnect pyramid, in the amount of $56 million to compensate the victims.
The website of the US Department of Justice states that last Friday, District Judge Todd Robinson granted the request of the department and the prosecutor's office to grant authority to sell crypto assets seized from a BitConnect representative. The proceeds will be paid to users who have suffered losses when investing in this project. The Justice Department said that the sale of confiscated cryptocurrencies for $56 million will be the largest compensation that victims of cryptocurrency fraud in the United States will receive.
The US government has already started searching for victims affected by BitConnect's actions. They are also encouraged to visit the official website of the US Department of Justice to learn about their rights to compensation and what they need to do to get it. According to court documents, on September 1, 44-year-old Glenn Arcaro of Los Angeles pleaded guilty to a massive conspiracy to defraud BitConnect investors in the United States and abroad. The court will sentence Arcaro on January 7, 2022. He faces a maximum sentence of up to 20 years in prison.
According to the agency, the attackers fraudulently convinced investors to invest more than $2 billion in the project. The founders of BitConnect promised them a monthly profit of 40%, plus additional interest when investing large amounts. The platform has been operating for more than two years, and its BCC token has been among the top ten cryptocurrencies by market capitalization for some time.
• Source: https://www.justice.gov/opa/pr/56-m...irst-step-compensate-victims-bitconnect-fraud
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The Australian promoter of the cryptocurrency pyramid BitConnect, three and a half years after being charged, pleaded guilty to fraud in the amount of $2.4 billion.
John Bigatton confirmed that he promoted BitConnect's unlicensed financial services on social media, held several seminars across Australia, and personally met with investors to encourage them to invest in the cryptocurrency scheme. On July 5, the Sydney District Court is scheduled to pass sentence — Bigatton faces a fine and up to two years in prison.
BitConnect is considered one of the largest cryptocurrency scams, which affected hundreds of investors around the world. Total losses are estimated at $2.4 billion. The Australian Securities and Investments Commission (ASIC) states: the organizers of the scheme lured potential investors with high fixed interest rates. To participate in the investment scheme, investors were offered to purchase their own token of the BitConnect platform. At the same time, investors were not allowed to withdraw deposits before the loan term expired.
Several years ago, ASIC accused Bigatton of offering unlicensed financial services. The agency demanded to ban the BitConnect promoter from providing financial services for seven years. Bigatton was later arrested for promoting BitConnect. The creators of the project actively advertised the scheme since 2016 around the world, but in 2018 the project suddenly closed its websites and social media accounts. This has led to serious investigations in several countries.
In 2022, the US Department of Justice filed formal charges against BitConnect founder Satish Kumbhani. Later, a federal district court in San Diego ruled that 800 affected investors from more than 40 countries should receive compensation for $17 million.
In the dock will be the main promoter of the pyramid Glen Arcaro, and six other active participants of the scam.
Given the amount of damage caused, $2 billion at the time of the scam, the US SEC will require a jury trial for the accused. Kumbhani will not be among them, and authorities have not been able to determine his whereabouts.
Arcaro and 4 other people pleaded guilty and actively helped expose the activities of cryptopyramide. In particular, they confirmed the falsity of BitConnect's communications of a stable income of 40% per month on the profits generated by a robot trading the volatility of the BTC exchange rate. In reality, the cryptopyramide paid out profits to the first investors due to the influx of funds from new depositors.
Glen Arcaro's role was to develop a network of promoters in North America, for which he received 15% of each amount raised by this team. The US SEC determined that his actions caused investors $24 million in losses already compensated by the accused.
==============
The US Department of Justice and the Prosecutor's Office of the Southern District of California sold crypto assets confiscated from the "promoter" of the BitConnect pyramid, in the amount of $56 million to compensate the victims.
The website of the US Department of Justice states that last Friday, District Judge Todd Robinson granted the request of the department and the prosecutor's office to grant authority to sell crypto assets seized from a BitConnect representative. The proceeds will be paid to users who have suffered losses when investing in this project. The Justice Department said that the sale of confiscated cryptocurrencies for $56 million will be the largest compensation that victims of cryptocurrency fraud in the United States will receive.
The US government has already started searching for victims affected by BitConnect's actions. They are also encouraged to visit the official website of the US Department of Justice to learn about their rights to compensation and what they need to do to get it. According to court documents, on September 1, 44-year-old Glenn Arcaro of Los Angeles pleaded guilty to a massive conspiracy to defraud BitConnect investors in the United States and abroad. The court will sentence Arcaro on January 7, 2022. He faces a maximum sentence of up to 20 years in prison.
According to the agency, the attackers fraudulently convinced investors to invest more than $2 billion in the project. The founders of BitConnect promised them a monthly profit of 40%, plus additional interest when investing large amounts. The platform has been operating for more than two years, and its BCC token has been among the top ten cryptocurrencies by market capitalization for some time.
• Source: https://www.justice.gov/opa/pr/56-m...irst-step-compensate-victims-bitconnect-fraud
==========
The Australian promoter of the cryptocurrency pyramid BitConnect, three and a half years after being charged, pleaded guilty to fraud in the amount of $2.4 billion.
John Bigatton confirmed that he promoted BitConnect's unlicensed financial services on social media, held several seminars across Australia, and personally met with investors to encourage them to invest in the cryptocurrency scheme. On July 5, the Sydney District Court is scheduled to pass sentence — Bigatton faces a fine and up to two years in prison.
BitConnect is considered one of the largest cryptocurrency scams, which affected hundreds of investors around the world. Total losses are estimated at $2.4 billion. The Australian Securities and Investments Commission (ASIC) states: the organizers of the scheme lured potential investors with high fixed interest rates. To participate in the investment scheme, investors were offered to purchase their own token of the BitConnect platform. At the same time, investors were not allowed to withdraw deposits before the loan term expired.
Several years ago, ASIC accused Bigatton of offering unlicensed financial services. The agency demanded to ban the BitConnect promoter from providing financial services for seven years. Bigatton was later arrested for promoting BitConnect. The creators of the project actively advertised the scheme since 2016 around the world, but in 2018 the project suddenly closed its websites and social media accounts. This has led to serious investigations in several countries.
In 2022, the US Department of Justice filed formal charges against BitConnect founder Satish Kumbhani. Later, a federal district court in San Diego ruled that 800 affected investors from more than 40 countries should receive compensation for $17 million.
