US Department of Justice Is Selling $56M Worth of Bitcoin
The cryptocurrency was seized from 20 digital wallets as part of the BitConnect scam investigation.
The US Department of Justice (DOJ) is planning to sell $56 million worth of Bitcoin which was seized during the BtiConnect cryptocurrency investment scheme investigation.
The BitConnect scheme is thought to be the largest cryptocurrency fraud ever charged criminally, and Glenn Arcaro was the man behind it. This “ textbook Ponzi scheme” promised investors large profits and guaranteed returns by trading on the volatility of cryptocurrency markets. In reality, early BitConnect investors were being paid with money collected from new investors while Arcaro earned $24 million in commissions and other payments.
As CNBC reports, the scheme defrauded investors of around $2 billion in Bitcoin over the course of a year beginning in January 2017. The cryptocurrency was eventually seized from 20 digital wallets under the control of Arcaro who has since pleaded guilty to conspiracy and wire fraud. He’s now facing a prison sentence of up to 20 years.
The DOJ wants the proceeds from the Bitcoin sale to go to the victims of this fraud. A website has been setup where a victim questionnaire and claim form is available. On completion, further information may be requested in order to substantiate the claims and ultimately help victims get at least some of their money back.
Originally published at https://www.pcmag.com.