The scheme defrauded around 4,000 investors of $2.4 billion.
The classic Ponzi scheme promised an annualized return of 3,700 percent.
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.
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.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
Bitget's Bitcoin Reserve Ratio Soars Over 300% Following Halving
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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