US seizes $56 million in crypto fraud to compensate victims in dollars

San Francisco, November 19, 2018 : .

The US government has taken approximately $56 millions worth of cryptocurrency from BitConnects number one promoterThe US Department of Justice plans to make the coins available for sale and to use any proceeds to compensate victims.

Court documents show that Glenn Arcaro (44), of Los Angeles pleaded guilty in an organized conspiracy to defraud BitConnect investors abroad and in the US.Investors were fraudulently incentivised to invest more than $2 billion.According to the Department of Justice, BitConnect is the most extensive cryptocurrency fraud case ever indicted.

The proceeds seized in crypto wallets will be kept by the government.It intends to use the funds to pay restitution to victims as per a future order of the court.

Arcaro will be sentenced January 7, 2022 and could face a maximum of 20 years imprisonment.BitConnect was largely traded on Bitcoin but the US government intends to compensate victims in US Dollars.

US Postal Services law enforcement division will assist in converting crypto into fiat currency.According to the statement, the government created a website that can be used by victims seeking compensation.

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