Monday, November 22, 2021

DoJ to sell $53m in BitConnect crypto

The DoJ will sell off $56m worth of cryptocurrency it seized as part of a massive Ponzi scheme. Proceeds will be used to reimburse victims. Glenn Arcaro, 44, pleaded guilty in a “textbook Ponzi scheme” that defrauded cryptocurrency investors worldwide of more than $2 billion. Fraudsters claimed that BitConnect used a proprietary technology that generated huge profits by using investors’ money to trade on the volatility of cryptocurrency exchange markets. A “trading bot and volatility software” was the answer.

Glenn Arcaro
Guaranteed to earn investors up to 40% total return per month, BitConnect followed a tiered investment system based on the sum of initial deposit – the more cash you put down, the bigger and faster profits you could rake in. The prospect of salting $1,000 away into your BitConnect investment account in order to get you more than $50m within three years didn't seem to bother suckers.
BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors.
The Bitconnect Coin was among the world's top 20 most successful cryptocurrency tokens until its price collapsed. BCC rose from a post ICO price of $0.17 to an all-time high of US$463 in December 2017. The last reported BCC price is $0.011