According to a court decision in the United States, victims of the BitConnect pyramid scam will get over $17 million in reparations.
A group of people who lost money in the BitConnect investment scheme will get their share of $17 million in restitution from a court in California. This comes after more than four years of court cases and uncertainty. Recently, Sam Bankman-Fried said he wasn’t guilty of fraud in New York.
Glenn Arcaro was the main person in the US to promote Bitconnect. On September 16, 2021, he pleaded guilty to conspiring to commit wire fraud. This is why the decision was made. He agreed that Bitconnect’s ICO and digital trading platform were a good way to take advantage of investors’ interest in bitcoin.
Glenn Arcaro, who lives in Los Angeles, was given a sentence of 38 months in a federal prison in the United States in September 2022. He acknowledged having received at least $24 million through the crypto fraud.
The DOJ noted at the time that the money would either be confiscated and given to the government or refunded to investors. In November of the previous year, the Justice Department auctioned off cryptocurrency assets confiscated from Bitconnect valued at $56 million.
The DoJ issued an indictment against BitConnect’s purported founder Satish Kumbhani on February 25, 2022, for his involvement in the fraud. Indian police are still investigating him. Kumbahani has yet to appear before a judge because it’s unclear where he is.
