According to the US Department of Justice, this is the largest return of a cryptocurrency from a fraudulent scheme.
The US government announced that it will sell tokens for $ 56 million to return money to victims of the BitConnect organization … They were seized from the organizer of the fraudulent scheme, Glenn Arkaro. This is reported on the website of the US Department of Justice.
In September, Arcaro admitted guilt in a mass conspiracy. He voluntarily gave up cryptocurrency, calling himself “the number one promoter” for BitConnect. Arcaro also said that he personally earned $ 24 million. BitConnect. The US Postal Service’s law enforcement unit will help convert the cryptocurrency to compensate victims.
BitConnect users were offered to purchase BCC cryptocurrency and place it in the service system at interest in order to receive passive income. The company developed a referral system with several levels, which made it even more like a traditional financial pyramid, but with a cryptocurrency.
As states US Securities and Exchange Commission, BitConnect’s revenue was about $ 2 billion. In addition, the company inspired people that investing in cryptocurrency is easy at a time when no one knew almost anything about it – in 2016-2018 years.