A San Diego Judge order one of the leaders of a massive Cryptocurrency investment scheme that defrauded hundreds of victims across the globe to pay more than $17 million in restitution. 

Glenn Arcaro,45, pleaded guilty in September 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. He was sentenced to 38 months in prison for defrauding approximately 800 victims from over 40 countries. 

"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.

According to the U.S. Attorney’s office, Arcaro and others misled investors about BitConnect’s “Lending 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.

Prosecutors said BitConnect operated a “textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors. Acaro and others ensured 15% of the money invested into BitConnect went into a “slush fund” to be used for the benefit of the owners and promoters, according to the U.S. Attorney’s office. 

The founder of BitConnect, Satish Kumbhani, was indicted for his central role in the multibillion-dollar fraud on Feb.25, 2022, but remains a fugitive. Anyone with information on his whereabouts should contact the FBI at 216-522-1400.

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