Wednesday, December 8

DOJ will compensate BitConnect victims!

The United States Department of Justice (DOJ) plans to sell $ 56 million in seized cryptocurrencies in connection with its case against the BitConnect Ponzi scheme.

«The government will retain custody of the profits seized in the crypto wallets. And he intends to use these funds to compensate the victims».

Specifically, DOJ, ad on Tuesday that he was selling $ 56 million in seized cryptocurrency to compensate victims of the BitConnect fraud. In fact, the Department of Justice noted that BitConnect is the largest cryptocurrency fraud system ever criminally charged.

To recall, BitConnect actors were responsible for conducting a fraudulent offering of unregistered securities, which generated $ 2 billion for them. BitConnect closed in 2018, following cease-and-desist orders from state regulators. Leaving many investors unable to redeem their cryptocurrencies.

DOJ to compensate BitConnect victims

Ultimately, United States District Judge Todd W. Robinson granted a request from the Department of Justice and the United States Southern District Attorney’s Office “for authorization to liquidate approximately $ 56 million in fraud proceeds. seized from BitConnect. ‘

«To date, this settlement is the largest single recovery from crypto fraud by the United States.».

Indeed, according to an announcement on November 16, the United States Department of Justice (DOJ) indicated that it would sell the seized cryptocurrencies. And, he would retain the earnings in US dollars, until he could use the funds to compensate BitConnect victims.

Very importantly, all potential victims of the BitConnect scheme are encouraged to visit the following portal. For information on the rights they may possess as victims and the opportunity to submit a victim impact statement and identify themselves as a potential victim.

In particular, the FBI and the Criminal Investigation Service of the Internal Revenue Service (IRS) are investigating the case. Also, the United States Postal Inspection Service is assisting with the liquidation of the proceeds of cryptocurrencies.

Glenn Arcaro Pleads Guilty

According documents Officials, on September 1, Glenn Arcaro pleaded guilty to participating in a massive conspiracy to defraud BitConnect investors in the United States and abroad. In which investors were encouraged to invest more than $ 2 billion fraudulently.

According to the DOJ, Arcaro is expected to be sentenced on January 7, 2022. He faces a maximum sentence of 20 years in prison. And it has been ordered to pay $ 24 million to BitConnect victims.

Additionally, the United States Securities and Exchange Commission (SEC) also brought charges against Glenn Arcaro and BitConnect founder Satish Kumbhani, whose whereabouts are still unknown.

Regarding these events, Lara Mehraban, Associate Regional Director of the SEC’s Regional Office in New York, commented:

We allege that these defendants stole billions of dollars from investors around the world, taking advantage of existing interest in cryptocurrencies. We will aggressively pursue and hold accountable those who engage in misconduct in the crypto asset space».

I close with this phrase by Paul Auster: «If justice exists, it has to be for everyone. Otherwise it would no longer be justice».

Leave a Reply

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