US Promoter of Bitconnect Crypto Ponzi Scheme Sentences From $3.4 Billion To 38 Months In Jail – Regulation Bitcoin News

0

The United States has sentenced a Los Angeles man to 38 months in federal prison for his role in the $3.4 billion Bitconnect crypto Ponzi scheme. He admitted to having earned no less than $24 million from the scam, which will now be “refunded to restitution investors or forfeited to the government”, explained the Department of Justice (DOJ).

US Bitconnect promoter sentenced to 38 months in prison

The US Department of Justice (DOJ) announced on Friday that a Los Angeles man had been sentenced to “38 months in prison for his participation in Bitconnect”. The DOJ has described Bitconnect as “a massive fraudulent cryptocurrency investment scheme.”

Glenn Arcaro, 44, conspired with others to exploit investor interest in cryptocurrency by fraudulently marketing Bitconnect’s proprietary coin offering and digital currency exchange as a lucrative investment , according to court documents.

The Department of Justice described:

The Bitconnect Ponzi scheme has trapped 4,154 victims from 95 countries, making it a truly global Ponzi scheme.

According to the DOJ, Arcaro funneled proceeds he earned from the Bitconnect program to offshore accounts, changed some of the proceeds into precious metals storage, and obtained foreign passports. The Justice Department noted that its goal was to avoid paying federal and state income taxes on its Bitconnect earnings and to protect its assets from collection by the Internal Revenue Service (IRS).

The DOJ detailed:

Arcaro admitted to earning no less than $24 million from the Bitconnect program, which court documents say will now be refunded to investors in restitution or confiscated from the government.

According to US authorities, the Bitconnect Ponzi scheme reached a market capitalization of $3.4 billion at its peak. The founder and his co-conspirators reportedly secured around $2.4 billion from investors. Recently, the Indian police launched an investigation into Bitconnect and condemned its founder, while the United States had already charged him in February.

What do you think about Glenn Arcaro being jailed for 38 months for his role in the Bitconnect Ponzi scheme? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Source link

Share.

Comments are closed.