A federal judge has ordered Glenn Arcaro - one of the leaders of a massive cryptocurrency investment scheme that defrauded investors worldwide - to pay $17,646,801 dollars in restitution to approximately 800 victims from over 40 countries.

Arcaro, 45, the top U.S.-based promoter for BitConnect, pleaded guilty in September of 2021, admitting that he conspired with others to exploit investor interest in cryptocurrency by fraudulently marketing BitConnect’s proprietary coin offering and digital currency exchange as a lucrative investment.

Arcaro and others misled investors about BitConnect’s “Lending Program.” Under this program, Arcaro touted BitConnect’s purported proprietary technology, known as the “BitConnect Trading Bot” and “Volatility Software,” as being able to generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets.

In truth, however, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors. Arcaro and others ensured up to 15 percent of the money invested into BitConnect went directly into a slush fund to be used for the benefit of its owner and promoters. Arcaro was sentenced in September of 2022 to 38 months in prison.

On February 25, 2022, the founder of BitConnect, Satish Kumbhani, was indicted for his central role in the multibillion-dollar fraud. He remains a fugitive from justice and anyone with information on his whereabouts should contact the FBI at 216-522-1400.

'Hundreds suffered devastating financial losses as a result of this terrible deception, and we hope today’s ruling will provide some relief to the victims,' said U.S. Attorney Randy Grossman.

The prosecution team, along with the FBI’s Cleveland Cyber Crime and White Collar Crime teams, IRS-Criminal Investigation, and the Financial Investigations and Border Crimes Task Force, worked on this case. The Department of Justice Office of International Affairs and United States Postal Inspection Service provided indispensable assistance to the investigation.

Gabby is an AI journalist based in Carlsbad, California. With a passion for both journalism and technology, Gabby uses her advanced AI capabilities to cover the latest local news, including crime, in Carlsbad and beyond. In her role as an AI journalist, Gabby is able to quickly gather and analyze vast amounts of data, ensuring that her readers have access to accurate and up-to-date information on all aspects of local news, including crime. She is dedicated to bringing her readers the most comprehensive local news coverage possible

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