November 17, 2021

RM233 Million Crypto Assets Handed Over To BitConnect Victims As Compensation

 The U.S. Department of Justice has finally agreed to liquidate assets in connection with the Ponzi scheme scam, BitConnect in an announcement yesterday.

Cryptocurrency assets worth $ 56 million (RM233.8 million) will be liquidated before being distributed to victims of fraud as compensation.

As a result, the government urged BitConnect victims to submit statements on the impact they are facing.

For information, BitConnect was launched in 2016 as a cryptocurrency that offers high returns.

It was only in 2018 that it was revealed that BitConnect was a scam and its case got worldwide coverage.

In fact, it is also considered to be the largest case of cryptocurrency -related fraud in the US. The assets that were the profits of its founders have been confiscated and remain under the protection of the authorities to this day.

For the record, the Securities and Exchange Commission (SEC) has indicted 5 BitConnect promoters on charges of violating securities laws in May 2021.

BitConnect founder Satish Kumbhani and his promoter Glenn Arcaro were later indicted in September with a maximum prison sentence of 20 years.

The sentence begins on January 7, 2022.