BitConnect Victims To Receive $17 Million

Key Points:

• $17 million will be given to BitConnect victims as reparations.
• BitConnect was widely acknowledged as a Ponzi scheme in legal and public forums. The BitConnect founder Satish Kumbhani was indicted in February 2022, while the leading U.S. promoter Glenn Arcaro entered a guilty plea in September 2021.
• The DOJ seized $56 million in bitcoin in November 2021, intending to resell it and compensate the victims.

According to a Jan. 12 statement from the U.S. Department of Justice (DOJ), $17 million will be given to BitConnect victims as reparations.

According to that assertion, a federal judge in San Diego, California, ordered that the monies be distributed to 800 people in 40 different nations.

BitConnect was widely acknowledged as a Ponzi scheme in legal and public forums. The BC founder Satish Kumbhani was indicted in February 2022, while the leading U.S. promoter Glenn Arcaro entered a guilty plea in September 2021. Its associates have been accused and adjudicated guilty of a variety of charges.

US Securities and Exchange Commission also filed a lawsuit against both parties in September 2021

In operation from 2016 to 2018, BitConnect Shortly after the project’s closure, the value of the crypto coin it was linked to plummet.

Many states, including Texas, North Carolina, and the U.K., took steps early to limit Bitconnect’s operations. However, because of the project’s decentralized nature and lack of centralized leadership, several developments around it persisted even after it was formally shut down or came under regulatory scrutiny.

Additionally, due to the nature of the case, victims have had to wait years for recompense. The DOJ seized $56 million in bitcoin in November 2021, intending to resell it and compensate the victims. Although the DOJ had not said precisely when it sold the confiscated cryptocurrency for cash, the $56 million in cryptocurrency funds would now be worth about $17 million owing to market fluctuations.

In any case, because BitConnect’s assets were taken from Arcaro personally, just a portion of their value—$17 million—will be given back to victims. According to a DOJ statement from the beginning of 2022, BitConnect received $2.4 billion from investors.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

Coincu News