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. He admitted to earning no less than $24 million from the fraud, all of which will now be “repaid to investors in restitution or given to the government,” the Department of Justice (DOJ) explained.
US Bitconnect Advertiser Sentenced to 38 Months in Prison
The US Department of Justice (DOJ) announced Friday that a Los Angeles man was sentenced to “38 months in prison for his involvement in Bitconnect.” The DOJ described Bitconnect as “a large fraudulent cryptocurrency investment scheme.”
Glenn Arcaro, 44, conspired with others to exploit investor interest in cryptocurrency by fraudulently marketing Bitconnect’s proprietary money offering and digital currency exchange as a lucrative investment, court documents showed.
The Ministry of Justice described:
The Bitconnect Ponzi scheme has ensnared 4,154 victims from 95 countries making it a true global Ponzi scheme.
According to the DOJ, Arcaro transferred the income he earned from the Bitconnect scheme to foreign accounts, converted some of the income into precious metals, and obtained foreign passports. The Justice Department noted that his goal was to avoid paying federal and state income taxes on his Bitconnect income and to shield his assets from collection by the Internal Revenue Service (IRS).
The DOJ detailed:
Arcaro admitted that he made no less than $24 million from the Bitconnect scheme, all of which, according to court documents, will now be paid back to investors in restitution or given to the government.
According to US authorities, the Bitconnect Ponzi scheme reached a market capitalization of $3.4 billion at its peak. The founder and his co-conspirators allegedly raised approximately $2.4 billion from investors. Recently, the Indian police launched an investigation into Bitconnect and booked its founder, although the United States had already charged him in February.
What do you think about Glenn Arcaro going to prison for 38 months for his role in the Bitconnect Ponzi scheme? Let us know in the comments section below.
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