DOJ Selling Cryptocurrency Seized From Bitconnect Worth $56 Million – Regulation Bitcoin News

DOJ Selling Cryptocurrency Seized From Bitconnect Worth $56 Million

The U.S. Department of Justice (DOJ) is promoting cryptocurrency value $56 million that was seized from the “primary promoter” of Bitconnect, the most important crypto fraud scheme ever charged criminally. Investors had been fraudulently induced to take a position over $2 billion. The Bitconnect promoter faces a most penalty of 20 years in jail.

US Selling Crypto Worth $56M Seized From Bitconnect’s ‘Number One Promoter’

The U.S. Department of Justice introduced Tuesday that it’s promoting $56 million in seized cryptocurrency to compensate victims of the Bitconnect fraud scheme. The Justice Department famous that “The Bitconnect scheme is the most important cryptocurrency fraud scheme ever charged criminally.”

U.S. District Judge Todd W. Robinson granted a request from the DOJ and the U.S. Attorney’s Office for the Southern District of California on Friday “for authority to liquidate roughly $56 million in fraud proceeds seized from the self-described ‘primary promoter’ of Bitconnect, a cryptocurrency, who consented to the seizure.” According to the Justice Department:

This liquidation is the most important single restoration of a cryptocurrency fraud by the United States so far.

Glenn Arcaro, 44, of Los Angeles, pleaded responsible on Sept. 1 to “taking part in a large conspiracy to defraud Bitconnect buyers within the United States and overseas, by which buyers had been fraudulently induced to take a position over $2 billion.”

The authorities is “in search of to make complete victims of the Bitconnect scheme by promoting the cryptocurrency and holding the proceeds in U.S. {dollars},” the DOJ detailed. “The authorities will keep custody of the seized proceeds in cryptocurrency wallets and intends to make use of these funds to supply restitution to the victims pursuant to a future restitution order by the court docket at sentencing.”

Arcaro is scheduled to be sentenced on Jan. 7, 2022, the DOJ famous, including that he “faces a most penalty of 20 years in jail.”

What do you consider the DOJ promoting cryptocurrency seized from Bitconnect’s promoter? Let us know within the feedback part beneath.

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