US Sentences Promoter of $3.4B Bitconnect Crypto Ponzi Scheme to 38 Months in Prison

A Los Angeles man was sentenced by the U.S. to 38 months federal prison for his involvement in the $3.4 million Bitconnect crypto Ponzi scheme. According to the Department of Justice (DOJ), he admitted that he earned no less than $24million from the scam. All of this money will now be "repaid by investors in restitution, or forfeited to government," the Department of Justice explained.

US Bitconnect Promoter Sentenced To 38 Months In Prison

U.S. Department of Justice (DOJ), announced Friday that a Los Angeles man was sentenced to 38 months imprisonment for participating in Bitconnect. Bitconnect was described by the DOJ as "a massive fraudulent cryptocurrency investing scheme."

Court documents revealed that Glenn Arcaro (44) conspired with others in order to exploit investor interest cryptocurrency. He fraudulently promoted Bitconnect's digital currency exchange and proprietary coin offering as a lucrative investment.

The Justice Department described the following:

Bitconnect Ponzi scheme attracted 4,154 victims in 95 countries, making it a worldwide Ponzi scheme.

According to the DOJ Arcaro transferred the Bitconnect proceeds to offshore accounts. He also changed some proceeds into precious metals storage and obtained foreign passports. According to the Justice Department, Arcaro wanted to avoid federal and state income taxes and protect his assets from being collected by the Internal Revenue Service.

The DOJ provided:

Arcaro acknowledged that he had earned more than $24million from Bitconnect. According to court documents, all of this money will be returned to investors as restitution or forfeited by the government.

U.S. authorities claim that Bitconnect Ponzi scheme had a market capitalization in excess of $3.4 billion at its peak. According to the allegations, the founder and his conspirators received approximately $2.4 billion from investors. Bitconnect founder was arrested by the Indian police, who also investigated the matter. However, he had been charged in the U.S. in February.

What do you think Glenn Arcaro should be sent to prison for 38 month for his involvement in the Bitconnect Ponzi Scheme? Comment below.

By: Kevin Helms
Title: US Sentences Promoter of $3.4B Bitconnect Crypto Ponzi Scheme to 38 Months in Prison
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Published Date: Tue, 20 Sep 2022 04:30:55 +0000

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