The promoter of the BitConnect fraudulent scheme will return $ 24 million to investors
Former director and promoter of BitConnect Glenn Arkaro pleaded guilty to participating in a fraudulent scheme that lured more than $ 2 billion from investors in cryptocurrencies.
According to a press release from the US Department of Justice, BitConnect is considered the largest criminalized cryptocurrency fraud.
Arkaro admitted that he colluded with other participants to defraud investors using their interest in cryptocurrencies. The scammers sold them proprietary BitConnect tokens and promoted exchange trading of digital assets as a profitable investment.
“In truth, BitConnect used the textbook Ponzi scheme to pay early investors money to later investors.” known as the BitConnect referral program. He earned up to 15% of the amounts invested in another part of the project – the lending program, and also received rewards from the “black box”.
“Arkaro took responsibility for his actions to deceive thousands of people around the world to invest in BitConnect. He filled his pockets with millions of dollars, with the money of victims who believed that their funds were being invested in a new cryptocurrency with high profitability, ” said FBI special agent Eric Smith.
The court ordered Arcaro to pay investors $ 24 million, which he earned money from fraud.
In parallel, the US Securities and Exchange Commission (SEC) filed a civil lawsuit against BitConnect, its founder Satish Kumbhani, Arcaro and its affiliate. The regulator accused them of an illegal investment offer, as a result of which they lured $ 2 billion from investors.
Today, we announced that we have filed an action against an online crypto lending platform, its founder, and its top US promoter and his affiliated company.
“We claim that the defendants stole billions of dollars from retail investors around the world by exploiting their interest in digital assets,” the document says.
The SEC is seeking to return money to investors with interest and civil sanctions against the defendants. ForkLog YouTube channel.