News Karnataka
Wednesday, December 07 2022
World

US seizes $56 mn in crypto fraud, to pay victims in dollars

Hyper Fund Cryptocurrency under govt scanner
Photo Credit :

San Francisco: The US government has seized approximately $56 million worth of cryptocurrency — the largest ever in the country — from a self-described “number one promoter” of BitConnect, a cryptocurrency.

The US Department of Justice intends to sell the coins and use the proceeds to reimburse victims.

According to court documents, Glenn Arcaro, 44, of Los Angeles, pleaded guilty to participating in a massive conspiracy to defraud BitConnect investors in the US and abroad, in which investors were fraudulently induced to invest over $2 billion.

The BitConnect scheme is the largest cryptocurrency fraud scheme ever charged criminally, the Department of Justice said in a statement this week.

The government will maintain custody of the seized proceeds in cryptocurrency wallets and intends to use these funds to provide restitution to the victims pursuant to a future restitution order by the court at sentencing.

Arcaro is scheduled to be sentenced on January 7, 2022, and faces a maximum penalty of 20 years in prison.

While BitConnect largely traded in Bitcoin, the US government plans to reimburse victims in US dollars.

The law enforcement arm of the US Postal Service will be helping convert the crypto to fiat currency.

The government has set up a website for victims who are looking for compensation, the statement said.

Share this:
MANY DROPS MAKE AN OCEAN
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

Visit 7Jackpots and find the best online casinos in India! Play the most popular casino games for real money!

Find the best odds at 10Cric and ipl betting 2021! Signup today and get up to a 100% deposit bonus.

To get the latest news on WhatsApp