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In the case of the BitConnect Ponzi scheme which is said to have deceived many people in the United States over more than US $ 2 billion worth of Bitcoin, the US Department of Justice sells the US $ 56 million of cryptocurrency it seized in the scam.
Last September, the Securities and Exchange Commission sued BitConnect and its founder Satish Kumbhani and the company’s main promoter in the United States, Glenn Arcaro, for ignoring the fact that “BitConnect did not deploy investor funds. to trade with his so-called trading robot ”. According to the SEC, “BitConnect and Kumbhani siphoned funds from investors for their own benefit and that of their associates, by transferring those funds to digital wallet addresses controlled by Kumbhani, Arcaro, other promoters, including Arcaro promoters. and other unknown people. . “
The scam is believed to have caused thousands of Americans across the country and abroad to lose more than US $ 2 billion in bitcoin between January 2017 and January 2018. BitConnect has offered investors returns of up to 40% , which would have been generated by the company’s “suspected volatility software”. trading bot. ”. The SEC has called the allegations a sham, and authorities believe the scheme is the biggest cryptocurrency fraud ever prosecuted.
The Justice Department hopes that with the liquidation of the seized amount which is considered “the largest recovery of a cryptocurrency fraud by the United States to date”, they hope to reimburse the victims of the fraud. BitConnect.
In other Bitcoin news, Taproot is the biggest cryptocurrency update in four years.
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