{"id":53001,"date":"2021-11-17T10:19:53","date_gmt":"2021-11-17T08:19:53","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=53001"},"modified":"2025-09-03T12:53:08","modified_gmt":"2025-09-03T09:53:08","slug":"u-s-to-sell-56-million-in-cryptocurrency-to-compensate-bitconnect-investors","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/u-s-to-sell-56-million-in-cryptocurrency-to-compensate-bitconnect-investors\/","title":{"rendered":"U.S. to Sell $56 Million in Cryptocurrency to Compensate BitConnect Investors"},"content":{"rendered":"<p>The U.S. Department of Justice and the United States Attorney&#8217;s Office for the Southern District of California <a href=\"https:\/\/www.justice.gov\/opa\/pr\/56-million-seized-cryptocurrency-being-sold-first-step-compensate-victims-bitconnect-fraud\">will sell<\/a> cryptocurrency worth $56 million, seized from former BitConnect director and promoter Glenn Arcaro. Proceeds will go toward compensating affected investors.<\/p>\n<p>The Department of Justice has described the forthcoming liquidation as the largest single restitution to date for cryptocurrency fraud.<\/p>\n<p>The department is currently <a href=\"https:\/\/www.justice.gov\/usao-sdca\/us-v-glenn-arcaro-21cr02542-twr\">seeking<\/a> victims of the BitConnect scheme. Payments will be issued in accordance with the forthcoming restitution order as part of Glenn Arcaro&#8217;s sentencing.<\/p>\n<p>A hearing is scheduled for January 7, 2022. The defendant faces a maximum sentence of 20 years in prison.<\/p>\n<p>Former BitConnect director Glenn Arcaro <a href=\"https:\/\/forklog.com\/en\/news\/bitconnect-scam-promoter-to-repay-24-million-to-investors\">pleaded guilty<\/a> to participating in the fraudulent scheme that duped investors out of more than $2 billion in cryptocurrency. The court ordered Arcaro to pay investors $24 million that he earned from the fraud.<\/p>\n<p>Separately, the U.S. Securities and Exchange Commission (SEC) filed a civil action against BitConnect, its founder Satish Kumbhani, Arcaro and an affiliated company. The regulator accused them of an unlawful investment offering, through which they duped investors of $2 billion.<\/p>\n<p>The SEC seeks the return of investors&#8217; money with interest and civil penalties against the defendants.<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 crypto news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. authorities will sell cryptocurrency worth $56 million seized from former BitConnect director and promoter Glenn Arcaro. Proceeds will go toward compensating affected investors.<\/p>\n","protected":false},"author":1,"featured_media":53002,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[708,1162,1163,1172,26],"class_list":["post-53001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitconnect","tag-court-cases","tag-ponzi-schemes","tag-seized-bitcoins","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/53001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=53001"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/53001\/revisions"}],"predecessor-version":[{"id":53003,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/53001\/revisions\/53003"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/53002"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=53001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=53001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=53001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}