The United States has sentenced a Los Angeles man to 38 months in federal prison for his role in the $3.4 billion Bitconnect crypto Ponzi scheme. The Department of Justice (DOJ) explained that he admitted to earning no less than $24 million from the scam, all of which will now be “returned to investors for restitution or forfeiture to the government.”
US Bitconnect promoter jailed for 38 months
The U.S. Department of Justice (DOJ) announced Friday that a Los Angeles man was sentenced to “38 months in prison” for his involvement in Bitconnect. The U.S. Department of Justice described Bitconnect as “a massive fraudulent cryptocurrency investment scheme.”
Court documents show that Glenn Arcaro, 44, and others conspired to exploit investors’ interest in cryptocurrencies by fraudulently marketing Bitconnect’s proprietary coin offering and digital currency exchange as a lucrative investment.
Department of Justice description:
The Bitconnect Ponzi scheme tricked 4,154 victims from 95 countries into a truly global Ponzi scheme.
According to the U.S. Department of Justice, Arcaro transferred his proceeds from the Bitconnect program to an offshore account, converted some of the proceeds into precious metal storage, and obtained a foreign passport. The DOJ noted that his goal was to avoid paying federal and state income taxes on his Bitconnect income and to protect his assets from collection by the Internal Revenue Service (IRS).
The Department of Justice details:
Arcaro admitted that he made no less than $24 million from the Bitconnect scheme, all of which will now be returned to investors, or confiscated to the government, according to court documents.
At its peak, the Bitconnect Ponzi scheme reached a market capitalization of $3.4 billion, according to U.S. authorities. The founders and their co-conspirators allegedly received about $2.4 billion from investors.Recently, the Indian police launched investigation Enter Bitconnect and book its founder, although the US has charged He is in February.
What do you think of Glenn Arcaro being jailed for 38 months for his involvement in the Bitconnect Ponzi scheme? Let us know in the comments section below.
Image Source: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for reference only. It is not a direct offer or invitation to offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused or related to the use of or reliance on any content, goods or services mentioned herein.