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Promoter of Bitconnect Sentenced to 38 Months in Prison

The US Department of Justice (DOJ) said on Friday that a Los Angeles man had been sentenced to 38 months in prison for his involvement in Bitconnect. The officials of the Justice Department called Bitconnect a “massive fraudulent investment scheme.”

Based on the court records, Glen Arcaro, 44, devised a plan with others to take advantage of cryptocurrency enthusiasts by falsely promoting Bitconnect’s initial coin offering and digital currency exchange as a profitable venture.

Justice Department said that the Bitconnect Ponzi scheme exploited 4,154 victims from over 95 countries, making it a global Ponzi scheme. According to the DOJ, Arcaro laundered his Bitconnect scam profits through offshore accounts, purchased precious metal storage with part of the rest, and acquired multiple passports from different countries.

The DOJ claimed that Arcaro planned to conceal his Bitconnect earnings from the IRS so he would be exempt from taxes. Arcaro admitted to earning no less than $24 million from the scheme, all of which will now be paid back to investors in restitution or forfeited to the government.

Bitconnect’s market valuation touched the $3.4 billion mark, according to US authorities reports. They claim that the founder and his associates duped the investors of about $2.4 billion. The creator of Bitconnect was charged in the US in February, but recently Indian authorities booked him.

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