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Former BitConnect promoter admits guilty of BTC theft

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Former BitConnect promoter admits guilty of BTC theft

Glenn Arcaro pleads guilty, will former Bitconnect investors get their money back?

Glenn Arcaro, the former BitConnect lead promoter in the United States, has pleaded guilty. Now he has to pay back the $ 24 million he earned through a Ponzi scheme to the cheated. That goes out of one report of the US Department of Justice SEC (United States Securities and Exchange Commision) on September 1st. Therein the cases Satish Kumbanhi (founder) and Glenn Arcaro as well as Future Money Ltd. treated.

Who is Glenn Arcaro?

Glenn Arcaro is a former director and chief executive officer of BCC promoters in the US. This company made approximately $ 2 billion selling unregistered securities to investors. These “unregistered securities” are investments in BitConnect’s loan program. In simple terms: the purchase of the in-house crypto currency BitConnect Coin (BCC). The founders and promoters of this cryptocurrency drew their profits from the investments using the method of the Ponzi scheme.

What happened at BitConnect?

BitConnect, however, existed from 2016 to 2018. The business model provided that users first convert their Bitcoins into BitConnect Coins. These were then supposedly cleverly and profitably invested. In addition, the company guaranteed its users with “volatility software” and “BitConnect Trading Bot” returns of up to 40 percent per month. This supposedly promising system attracted a large number of investors, so that BitConnect was one of the largest cryptocurrencies worldwide in 2018.

But the bubble burst, because the promises could no longer be paid off when demand increased and the website was soon no longer accessible. Within a few days, the BCC course lost over 90 percent of its value. Several regulators from different nations (such as Australia, Great Britain and the USA) investigated the case and found the scandal. It is still unclear whether the software or the bot ever existed. As a result, the US Department of Justice is investigating an unspecified number of people who have had various relationships with the company. Your allegation is the unlawful sale of securities without proper authorization.

In total, the company earned 325,000 BTC with its promoters. That was around two billion US dollars at the time.

What happens to Glenn Arcaro?

Meanwhile, Glenn Arcaro has confessed. He has admitted that the fraudulent marketing deliberately misled investors. He has admitted to earning 15 percent for every investment in BitConnect’s loan program. In addition, he received shares in the total amount of investments made via a hidden fund. According to his own statement, he earned around 24 million US dollars. He should now repay this in full to those affected.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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