The US has sentenced a Los Angeles man to 38 months in prison for his role in the $3.4 billion BitConnect crypto Ponzi scheme. He admitted to earning at least $24 million, all of which is now “returning money to investors or being forfeited to the government,” according to the Department of Justice (DOJ).
US Bitconnect Promoter Sentenced to 38 Months in Prison
A Los Angeles man has been sentenced to 38 months in prison for his involvement in Bitconnect, the United States Department of Justice (DOJ) announced Friday. The DOJ described Bitconnect as a “massive fraudulent cryptocurrency investment scheme.”
Court documents show Glenn Arcaro, 44, conspired with others to exploit investor interest by fraudulently presenting Bitcoin’s proprietary coin offering and digital currency exchange as a lucrative investment.
The Department of Justice said:
The Bitconnect Ponzi scheme became a truly global Ponzi scheme, ensnaring 4,154 victims from 95 countries.
According to the DOJ, Arcaro transferred proceeds from the Bitconnect scheme to offshore accounts, converted some of the proceeds into precious metals storage and obtained foreign passports. The Department of Justice stated that its purpose is to avoid paying federal and state income taxes on Bitconnect’s earnings and to prevent the Internal Revenue Service (IRS) from collecting its assets.
The DOJ listed:
Arcaro admitted that he made no less than $ 24 million from the Bitconnect scheme, all of which, according to court documents, will now be paid to investors in return or thrown to the government.
According to US authorities, the Bitconnect Ponzi scheme has reached a maximum capitalization of 3.4 billion dollars. The founder and his associates are said to have raised about $2.4 billion from investors. Indian police recently launched an investigation into Bitconnect and arrested its founder, although the US had previously indicted him in February.
What do you think about Glenn Arcaro going to prison for 38 months for his role in the Bitconnect Ponzi scheme? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
DisclaimerThis article is for informational purposes only. It is not an offer or solicitation to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the Author shall be liable, directly or indirectly, for any damages or losses arising out of the use of or reliance on any content, goods or services referred to in this paragraph.