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The United States has sentenced a Los Angeles man to 38 months in federal prison for his involvement in the $3.4 billion BitConnect cryptocurrency Ponzi scheme. He admitted to making at least $24 million from fraud, all of which “will either be returned to investors or confiscated by the government,” the Department of Justice (DOJ) explained.
The US Department of Justice (DOJ) announced Friday that a Los Angeles man has been sentenced to “38 months in prison for participating in Bitconnect.” DOJ described Bitconnect as a massive illicit cryptocurrency investment scheme.
Glenn Arcaro, 44, conspired with others to capitalize on investors’ interest in cryptocurrencies by fraudulently touting Bitconnect’s proprietary coin offering and digital currency exchange as a lucrative investment, court says document shows.
The Department of Justice explains:
The Bitconnect Ponzi scheme has become a truly global Ponzi scheme, involving 4,154 victims from 95 countries.
According to the DOJ, Arcaro transferred proceeds from the Bitconnect scheme to offshore accounts, cashed some of the proceeds into precious metal vaults, and obtained foreign passports. The Justice Department noted that his goal is to avoid paying federal and state income taxes on his BitConnect income and protect his assets from collection by the Internal Revenue Service (IRS).
DOJ Details:
Arcaro has admitted to making at least $24 million from the Bitconnect scheme. All of which will either be returned to investors or confiscated by the government, according to court documents.
According to US officials, the Bitconnect Ponzi scheme reached a market capitalization of $3.4 billion at its peak. The founders and co-conspirators are said to have made about $2.4 billion from investors.Indian police recently Investigation the United States has already Paid him in february.
What are your thoughts on Glenn Arcaro going to jail for 38 months for his role in the Bitconnect Ponzi scheme? Let us know in the comments section below.
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