The US Department of Justice (DOJ) has announced that BitConnect victims will receive $17 million in damages. January 12th.
The statement shows that a federal court in San Diego, California ordered the funds to go to 800 individuals in 40 countries.
BitConnect was widely perceived as a Ponzi scheme, both publicly and in legal proceedings. The associate has been indicted and convicted on various allegations. BitConnect founder Satish Kumbani said he was indicted in February 2022, and US Reed his promoter Glenn Arcaro said he pleaded guilty in September 2021.
BitConnect was operational from 2016 to 2018. Shortly after the project was closed, the value of the crypto tokens associated with the project collapsed.
Various jurisdictions, including the UK, Texas, and North Carolina, took steps to early restrict Bitconnect’s operations. However, the project’s decentralized structure and lack of central leadership meant that some development on the project continued even after it was formally shut down or targeted by regulators.
The nature of the situation also meant that victims had to wait years for compensation.of November 2021DOJ seized $56 million in cryptocurrency with the intention of selling it to compensate victims. Her $56 million crypto fund is now worth around $17 million due to market fluctuations.
In any case, the $17 million to be returned to victims is only a fraction of the value of BitConnect privately seized from Arcaro. BitConnect itself has earned him $2.4 billion from investors, according to a DOJ statement. in early 2022.