Victims of the infamous BitConnect Ponzi scheme in 2017 are due to receive net restitution worth $17 million, according to a statement from the Department of Justice (DOJ) on Thursday. 

According to the DOJ’s statement, a federal district judge in San Diego ordered that the funds be distributed to 800 victims of the scam across 40 countries. 
The department described BitConnect as “a textbook Ponzi scheme” that paid earlier investors with money from newer investors. 
BitConnect’s top promoter Glenn Arcaro pled guilty to wire fraud conspiracy in September 2021. He was sentenced to prison for over 3 years in 2022.
Shortly afterward in February 2022, BitConnect’s founder Satish Kumbani was indicted for his role in the fraud.
“Arcaro and his co-conspirators ensured that up to 15% of the money invested into BitConnect went directly into a slush fund to be used for the benefit of its owner and promoters,” read the statement.
BitConnect launched in 2016, but reached a peak market capitalization of $2.4 billion before collapsing. Investors in BitConnect were promised a 1% daily yield on their Bitcoin. 
By contrast, Securities and Exchange Commission chairman Gary Gensler has warned against using any platforms offering a yield that’s anything over 7% per year.

The post BitConnect Ponzi Victims to Receive $17 Million Restitution appeared first on Crypto Adventure.

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Filed under: Bitcoin - @ January 14, 2023 2:51 am