Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
US Sentences Promoter of $3.4B Bitconnect Crypto Ponzi Scheme to 38 Months in Prison – Regulation Bitcoin News
The United States has sentenced a Los Angeles man to 38 months in federal prison for his role in the $3.4 billion Bitconnect crypto Ponzi scheme. He admitted to making no less than $24 million from the scam, which will now be “repaid to investors in restitution or forfeited to the government,” the Department of Justice (DOJ) explained.
American Bitconnect organizer sentenced to 38 months in prison
The US Department of Justice (DOJ) announced Friday that a Los Angeles man has been sentenced to “38 months in prison for his participation in Bitconnect.” The DOJ described Bitconnect as “a massively fraudulent cryptocurrency investment scheme.”
Glenn Arcaro, 44, conspired with others to exploit investor interest in cryptocurrency by fraudulently marketing Bitconnect’s proprietary coin offering and digital currency exchange as a lucrative investment, court documents showed.
The Ministry of Justice described:
The Bitconnect Ponzi scheme ensnared 4,154 victims from 95 countries, making it a true worldwide Ponzi scheme.
According to the DOJ, Arcaro transferred the proceeds he earned from the Bitconnect scheme to offshore accounts, diverted some of the proceeds to precious metal storage, and obtained foreign passports. The Justice Department noted that his goal was to avoid paying federal and state income taxes on his Bitconnect income and to protect his assets from collection by the Internal Revenue Service (IRS).
The DOJ detailed:
Arcaro admitted he made no less than $24 million from the Bitconnect scheme, all of which, according to court documents, will now be returned to investors in restitution or forfeited to the government.
According to US authorities, the Bitconnect Ponzi scheme reached a market value of $3.4 billion at its peak. The founder and his co-conspirators reportedly raised around $2.4 billion from investors. Recently, the Indian police launched an investigation into Bitconnect and booked the founder, even though the US had already charged him in February.
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What do you think about Glenn Arcaro going to prison for 38 months for his role in the Bitconnect Ponzi scheme? Let us know in the comments section below.
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