• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
BitConnect SEC
Nexo

BitConnect Promoter Pleads Guilty In $2 Billion Crypto Scheme

Tolu Okuwoga by Tolu Okuwoga
9 months ago
in Crypto News
0

Former director and promoter of the BitConnect Ponzi scheme, Glenn Arcaro, pled guilty on Wednesday in federal court to fraud charges. His participation in a massive conspiracy involving the crypto exchange defrauded investors of over $2 billion.

The United States Department of Justice, Southern District of California, published this announcement on Wednesday, September 1, 2021.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

This case is an extension of a civil case announced in May against BitConnect founder Satish Kumbhani. The U.S. Securities and Exchange Commission charged him with lying about the exchange’s ability to generate profits. And also violating registration laws meant to protect investors. This crypto scheme could be the largest cryptocurrency fraud ever charged.

The BitConnect Promoter’s Crimes

Glenn Arcaro admitted to conspiring with others to exploit investor interest in cryptocurrency. They did this by fraudulently marketing BitConnect’s proprietary coin offering and digital currency exchange as a lucrative investment.

Additionally, according to the report, Arcaro admitted that he and others conspired to mislead investors about the “BitConnect Trading Bot” and “Volatility Software”. These are BitConnect’s purported proprietary technology. He marketed them as being able to generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets. When in fact, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Related Reading | Is Mining City a Ponzi scheme?

“Arcaro and his confidantes preyed on investor interest in cryptocurrency. As a result, a staggering number of individuals lost an enormous amount of money,” said Acting U.S. Attorney Randy S. Grossman of the Southern District of California. “The Department of Justice will continue to protect the investing public and scrutinize the burgeoning cryptocurrency industry. To those who would be the next in line to defraud the investing public, let this action by the Department of Justice stand as a stark cautionary tale. To the investing public, let this also serve as a cautionary tale to safeguard your money and invest it wisely.”

Total Crypto market cap on TradingView.com

Total crypto market rises to $2.28 Trillion | Source: Crypto Total Market Cap from TradingView.com

Arcaro allegedly operated a large network of promoters in North America, forming a pyramid scheme known as the BitConnect Referral Program. He earned as much as 15% of every investment into the BitConnect Lending Program. Arcaro further received portions of all investments from a concealed “slush” fund.

In addition, according to the IRS, Arcaro and his accomplices circumvented reporting regulations to conceal their scheme.

Arcaro Pleads Guilty

In his plea agreement, Arcaro acknowledged that he and others intentionally misled investors to believe that BitConnect was a lucrative investment. He also posted videos on social media that mocked those who questioned the authenticity of BitConnect’s business.

Related Reading | AriseBank CEO Sentenced To Five Years For Crypto Scheme

“Arcaro has accepted responsibility for his actions of defrauding thousands of individuals worldwide to invest in BitConnect,” said Special Agent in Charge Eric Smith of the FBI’s Cleveland Field Office. He also warned that the FBI would not stop pursuing those that engage in financial criminal deception.

Altogether, the BitConnect promoter admitted to earning around $24 million from the fraud conspiracy. And according to court documents, he must repay investors the full amount.

Feature image from CryptoSlate, Chart from TradingView.com
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Tolu Okuwoga

Tolu Okuwoga

Related Posts

Fed Report: 12% Of American Adults Invested In Crypto In 2021

Fed Report: 12% Of American Adults Invested In Crypto In 2021

1 hour ago
US Rep Madison Cawthorn Under Investigation For Promoting Meme Crypto Token

US Rep Madison Cawthorn Under Investigation For Promoting Meme Crypto Token

6 hours ago
liquidations

Liquidations Settle As Bitcoin Regains Footing Above $30,000

11 hours ago
Ethereum

Ethereum Co-Founder Hints That The Merge Could Experience A Delay

1 day ago
Crypto.com

Crypto.com Steps Up To Boost Security And Privacy Studies Via Donations

2 days ago
Bitcoin

Bitcoin Pizza Day: Celebrating The $300-Million Pizza Order – And Other Fun Facts

3 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.