US Department of Justice Sells $ 56 Million in Crypto Seized in Bitcoin Investment Fraud Case | Currency News | Financial and business news

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Bitcoin.

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The US Department of Justice sells $ 56 million in seized cryptocurrency from the main promoter of BitConnect. The proceeds from the sale will be used to reimburse victims of the BitConnect scam. In 2017, the founder of BitConnect and his promoters defrauded investors of $ 2 billion.

The victims of the biggest heist in the cryptocurrency world may soon receive retaliation.

That’s because the US Department of Justice is selling $ 56 million worth of cryptocurrency it seized as part of its case against BitConnect, according to a press release on Tuesday. The founder of BitConnect, a fraudulent cryptocurrency, and its promoters defrauded thousands of people out of $ 2 billion worth of bitcoin in 2017.

The scheme is the largest cryptocurrency fraud ever to be criminally charged, the Justice Department said in its statement. The proceeds from the sale will be used to help reimburse the victims of the scam.

The crypto for sale was seized from BitConnect’s main promoter Glenn Arcaro, 44, who pleaded guilty in federal criminal court for his role in the case. Insider previously reported that he and BitConnect founder Satish Kumbhani told investors the coin could earn monthly returns of up to 40%.

In September, the U.S. Securities and Exchange Commission sued Kumbhani for raising $ 2 billion from investors in an offer not properly registered with regulators. In May, the SEC sued five BitConnect promoters who created video testimonials on YouTube and received commissions from it. Arcaro, for its part, received $ 24 million in referral commissions, Insider previously said.

Experts have advised investors to remain vigilant in the crypto world. As the popularity of cryptocurrencies increases, so does the number of scams. Insider reported in July that a 77-year-old woman lost more than $ 12,000 in a bitcoin scam. She is one of the many people who have been swindled with no money.

More recently, the makers of the Squid Game coin named after the hit Netflix show made millions after investors skyrocketed the price of the coin itself. The crooks reaped the rewards before the crypto project went offline.

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