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The U.S. DOJ To Sell $56M Of Crypto To Compensate Victims From The "Largest Cryptocurrency Fraud Scheme"
Summary: The U.S. Department of Justice (DOJ) issued an announcement on Tuesday that it will sell $56 million of seized cryptocurrency to compensate victims of the BitConnect crypto Ponzi scheme. The DOJ called the BitConnect scheme "the largest cryptocurrency fraud scheme ever charged criminally," investors were defrauded of more than $2 billion. This liquidation is also the largest ...
The U.S. Department of Justice (DOJ) issued an announcement on Tuesday that it will sell $56 million of seized cryptocurrency to compensate victims of the BitConnect crypto Ponzi scheme.
The DOJ called the BitConnect scheme "the largest cryptocurrency fraud scheme ever charged criminally," investors were defrauded of more than $2 billion. This liquidation is also the largest single recovery of cryptocurrency fraud in the United States to date.
The "number one" promoter and founder of BitConnect, Glenn Arcaro, confessed to federal wire fraud in early September. He will face up to 20 years in prison. The final sentence will be issued on January 7, 2022.
BitConnect was established in 2016 and launched a digital token called BitConnect Coin, which can be used to exchange BTC. The company claimed that it can generate a monthly return rate of 40% through the so-called "volatility software trading robot". The false return rate obtained by investors shows that the annual return rate is as high as 3700%. BitConnect closed after receiving a suspension order from Texas regulators for violating securities laws.
By Mary Liu
Tags: bitconnect,DOJ,Glenn Arcaro,Ponzi
Link: The U.S. DOJ To Sell $56M Of Crypto To Compensate Victims From The "Largest Cryptocurrency Fraud Scheme" [Copy]
