BitConnect victims to receive $17 million as Restitution

Key Takeaways:

  • According to a decision in a Californian court, about 800 victims of the infamous BitConnect scheme may shortly receive a piece of $17 million in restitution.
  • According to the DOJ, BitConnect ran a classic Ponzi scheme.

A bunch of BitConnect investment scheme victims will be getting their portion of a $17 million compensation verdict by a court in California after plenty of more than four years of court processes and ambiguity.

Due to their capital losses in BitConnect, a huge cryptocurrency investment product that misled thousands of overseas investors, a federal district court in San Diego ordered the restitution sum to be disbursed to over 800 victims from over 40 different nations.

According to the US District Court, BitConnect was a fictitious platform for crypto financing that promoted its own technologies, such as the “Bitconnect Trading Bot” and “Volatility Software,” which promised investors secured returns.

Early in 2022, BitConnect creator Satish Kumbhani reportedly attempted to flee from his native place , India after being  criminally accused by a San Diego court for running a $2.4 billion Ponzi scam from investors.

Kumbhani is accused of operating an unlicensed money transferring business, conspiring to conduct international money laundering, manipulating commodity prices, and wire fraud.

On September 16, 2021, Glenn Arcaro, the leading BitConnect promoter headquartered in the United States, entered a plea of guilty to a charge of conspiring to conduct wire fraud and was mandated to repay investors $24 million. 

Arcaro received a sentence of just over 3 years in jail in September 2022 for portraying BitConnect’s loan business as a profitable venture.

One of the  greatest bitcoin swindles on record was executed through Bitconnect. According to reports, the scheme received close to 325,000 BTC, which is more than $6 billion in today’s value. The now inoperative cryptocurrency platform was a 2016 Pyramid scheme that deceitfully attracted investors with guarantees of absurdly large profits.

However, the entire platform ended up being a “classic Ponzi scheme,” with early investors providing the funds used to pay out early investors, according to the DOJ.

BitConnect was in operating condition from 2016 to 2018. The affiliated crypto token’s value plummeted fairly soon after the venture was shut down. Due to the scale of the problem, victims have had to wait several years for reimbursement.

Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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