BitConnect Promoter Found Guilty Of Defrauding Investors In A $2B Cryptocurrency Scheme

The advocate and ex-director of a Ponzi scheme named BitConnect, Glenn Arcaro, was found guilty of defrauding charges by the federal court. His involvement in a big conspiracy regarding crypto exchange embezzled more than $2 billion from the investors. The United States Justice Department, based in California’s Southern District, issued this notice on Wednesday, 1st September. The lawsuit is a sub-division of a case held in May against Satish Kumbhani (the founder of BitConnect). The U.S. SEC (Securities-and-Exchange-Commission) alleged him for deceiving about the company’s potential for making profits. He was also charged with infringing registration laws specified to shield investors. The scheme is considered to be the biggest fraud being taken under the court’s consideration.

The offenses of BitConnect promoter

Glenn Arcaro acknowledged having conspired along with others to abuse investor interest regarding cryptocurrency. Together they did so by deceitfully promoting the digital currency of BitConnect as a profitable investment and the exclusive coin offering of the exchange. Moreover, as per the reports, Arcaro confessed that he, as well as the others, collaboratively misled the investors regarding the Volatility Software and BitConnect-Trading-Bot. Both are claimed to be BitConnect’s proprietary technology.

Arcaro advocated them for being capable of acquiring substantial gains and falsely assured the returns via utilizing the money of the investors in trade on exchange markets’ volatility. However, BitConnect worked as a typical Ponzi scheme as it paid money to the first investors by collecting from the later ones. He and his affiliates victimized the investor interest related to cryptocurrency. Consequently, a surprising number of people were deprived of a huge sum of money, as per Randy S. Grossman (the acting Attorney of the United States). The Attorney affirmed that the Justice Department would be persistent in preventing the investors and investigating the expanding industry of crypto.

Arcaro allegedly worked on an enormous network of advocates throughout North America to develop a pyramid project called BitConnect-Referral-Program. He gained up to 15% from every investment during the program. He additionally acquired more portions of the entire investments through a hidden fund.

Arcaro found guilty

Arcaro has confessed that he and his partners deliberately abused the investors via social media. He also accepted the responsibility for deceiving thousands of persons across the world to invest money in BitConnect. Overall, the BitConnect advocate accepted that more than $24 million were earned by him through the conspiracy. Court has ordered him to repay the complete amount to the investors.

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