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About 800 people who lost money in the BitConnect Ponzi scheme will get a share of the $17 million that will be given back to them.

According to a press release from the DOJ on January 12, the $17 million seems to be Glenn Arcaro’s payment for the damage he caused.

As part of his plea, Arcaro said that he and others planned to take advantage of investors’ interest in cryptocurrency by falsely promoting BitConnect’s initial coin offering and digital currency exchange as good investments.

Arcaro and his accomplices used BitConnect’s “Lending Program” to trick investors. Arcaro said that the “BitConnect Trading Bot” and “Volatility Software,” which he said were BitConnect’s secret technologies, could make investors a lot of money and give them a guarantee of a return by trading on the volatility of cryptocurrency exchange markets.

In reality, though, BitConnect was a classic Ponzi scheme.

In 2021, Arcaro (on the right) pleaded guilty to fraud charges related to BitConnect. At the beginning of 2022, he also settled similar charges brought by the SEC.

In September 2022, Arcaro was given a prison sentence of 38 months.

Satish Kumbhani, an Indian, ran BitConnect, which was a $2.4 billion Ponzi scheme. In February 2022, Kumbhani was charged with a crime.

Kumbhani has been arrested twice by the Indian government. Even in 2019, the FBI was able to find time to talk to him.

Because of problems with the Indian legal system, the Indian government let Kumbhani (right) go both times.

The SEC found out that Kumbhani had left India in February 2022. In August 2022, the Indian government filed a third case against Kumbhani related to BitConnect.

Kumbhani is thought to have gone to Dubai, which is the MLM crime capital of the world. Both India and the US are still looking for him.

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