The wait for some of the victims of the crypto Ponzi scheme BitConnect looks to be over, as a San Diego federal district court on Thursday ordered the distribution of over $17 million in restitution. The proceeds will be distributed among 800 Bitconnect victims across over 40 countries.

Some BItConnect Investors to Receive Restitution

However, the restitution will cover only a fraction of the Bitcoinnect victims, as the scheme defrauded around 4,000 investors from 95 countries. It was one of the largest cryptocurrency Ponzi schemes that swindled about $2.4 billion from investors riding the craze of the crypto market in 2017. The scheme was launched in 2016 and collapsed in 2018.

A viral video from a promotional event of BitConnect.

BitConnect Was a Classic Ponzi Scheme

The Department of Justice elaborated that the promoters of BitConnect fraudulently marketed its initial coin offering (ICO ) and digital currency exchange as a lucrative investment. They even mislead investors with BitConnect’s lending program, claiming to use proprietary technology, known as the “BitConnect Trading Bot” and “Volatility Software,” to generate “substantial profits and guaranteed returns.”

The scheme promised investors to return 1 percent daily compounded interest in investments that make an annual return of 3,700 percent.

However, BitConnect operated a classic Ponzi scheme: the promoters paid earlier investors with proceeds brought in from newer investors. Additionally, the operators of the fraudulent scheme endured keeping 15 percent of the incoming customers’ investments into a slush fund for its owners and promoters.

The court order for restitution came with the guilty plea of BitConnect’s US-based promoter, Glenn Arcaro, for conspiracy to commit wire fraud. Last October, he was sentenced to 38 months in prison and was ordered to pay $24 million to BitConnect victims. Furthermore, the US prosecutors indicted Satish Kumbhani, the Founder of BitConnect, last year for his role in the massive fraud. However, his whereabouts are unknown. On top of that, he is facing a police investigation in India.