The U.S. The Justice Department will sell $ 56 million worth of cryptocurrency held as part of a larger Ponzi scheme man who launched a crypto loan program BitConnect, authorities said today Two.
The Justice Department said the removal of the cryptocurrency will follow “some counterfeit U.S. currencies so far.”
The money will be used to pay the people who were robbed by BitConnect.
The so-called fraud has deceived thousands of people in the United States and overseas of more than $ 2 billion bitcoin from January 2017 to January 2018 providing a high return of 40% per month, which is expected to form the BitConnect joint venture the cloud-based trading bot.
“These allegations are baseless,” the cryptocurrency Securities and Exchange Commission said in a lawsuit in September against BitConnect, whose founders Satish Company and Glenn Arcaro, Los Angeles worked as CEO to start BitConnect in the United States.
“Because the agent knew whether to turn around and hijack, BitConnect did not make trading transactions on its Trading Bot account,” the SEC said in a suit.
Instead, “BitConnect and Kumbhani used consumer funds for their benefit, and for some of them, investing in digital wallet addresses controlled by Kumbhani, Arcaro, other advertisers, among the Arcaro Advertisers, and other anonymous individuals.”
Arcaro confessed that he and others tricked investors into owning BitConnect technology, called “BitConnect Trading Bot” and “Volatility Software,” and said they would make more money through online trading.
“BitConnect implemented the Ponzi scheme first by paying money to BitConnect customers from customers later,” the Justice Department said in September.
Arcaro faces up to 20 years in prison. His verdict will be announced on January 7.
A federal judge on Friday approved the U.S. Department of Justice and United States Attorney General’s Office. of the Southern District of California to end the cryptocurrency seized by Arcaro, admitted theft.
The SEC in its courts said BitConnect is a non-profit organization that has registered four companies in the UK, all of which are no longer operating or liquidating.
The company, a 35-year-old Indian citizen, was unknown, the SEC said.