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The U.S. Department of Justice (DOJ) is selling $56 million worth of cryptocurrency, which was seized from Bitconnect’s “number one promoter”, the largest crypto fraud scheme in history. Investors were lured into investing more than US$2 billion. Bitconnect promoters face up to 20 years in prison.

The United States sells $56 million worth of cryptocurrency and seizes it from the “first initiator” of Bitconnect

The US Department of Justice announced on Tuesday that it will sell $56 million in seized cryptocurrency to compensate victims of Bitconnect’s fraudulent scheme. The Department of Justice noted that “The Bitconnect program is the largest cryptocurrency fraud program in history.”

U.S. District Judge Todd W. Robinson approved Friday’s request from the U.S. Department of Justice and the U.S. Attorney’s Office for the Southern District of California to “authorize the liquidation of approximately $56 million from the “first initiator” who claimed to be Bitconnect. Fraudulent proceeds, a cryptocurrency that agrees to seizure.” According to the Ministry of Justice:

This liquidation is the largest single recovery of cryptocurrency fraud in the United States to date.

Glenn Arcaro, 44 ??years old, from Los Angeles, Plead guilty On September 1, “participated in a large-scale conspiracy to defraud Bitconnect investors in the United States and abroad, in which investors were tricked into investing more than US$2 billion by fraud.”

The U.S. Department of Justice stated in detail that the government “try to sell cryptocurrency and hold the proceeds in U.S. dollars to make the Bitconnect project the entire victim.” “The government will keep the seized proceeds in the cryptocurrency wallet, and intends to use these funds to provide compensation to the victims in accordance with the compensation order issued by the court in the future.”

The U.S. Department of Justice pointed out that Alcaro is scheduled to be sentenced on January 7, 2022, and added that he “faces up to 20 years in prison.”

What do you think about DOJ selling the cryptocurrency seized from the initiator of Bitconnect? Please let us know in the comments section below.

Image Source: Shutterstock, Pixabay, Wikimedia Commons

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