DoJ to return $56m to victims of BitConnect scam

US authorities have been able to seize an additional $56m from a participant in the infamous BitConnect scam, according to the Department of Justice (DoJ).

This is thought to be the largest recovery of stolen crypto to date. It comes on top of the news that the US Internal Revenue Service has been able to seize a total of $3.5bn in crypto assets through tax enforcement for the fiscal 2021.

The person who gave up the ill-gotten funds is Glenn Arcaro, a resident of Los Angeles, who is also self-professed as “BitConnect’s number one promoter”.

BitConnect’s scam managed to elicit $2bn in investment. The scheme convinced people that they would be able to generate a return at a break-neck speed all from trading crypto.

BitConnect styled itself as a platform that “made investing in crypto easy” and operated between 2016 and 2018.

BitConnect’s modus operandi was to use new investors’ money to pay old ones so that it could keep running its scheme and attract more capital, much of which was siphoned off.

Arcaro pleaded guilty back in September and assisted authorities in retrieving the stolen money. He was a staunch supporter of the company and was both engaged with attracting new customers as well as dismissing criticism from observers who expressed their concerns about the way the company was operating.

The funds that have been seized will be used to reimburse as many of the victims as possible. All victims will be paid back in USD.

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Source

Updated: 11/19/2021 — 11:00