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U.S. Government To Sell $56 Million Worth Of Crypto Seized In BitConnect Case |

The U.S. government is set to sell crypto that was seized from the BitConnect case in 2018. The scam which had been carried out in the quad of a year is the biggest ever in the crypto space, with over $ 2 billion lost by victims home and abroad. It was one of the most outstanding crypto Ponzi schemes that run from January 2017 to January 2018 .
The schema promised investors an outstanding 40 % return on investment every calendar month, a clear reading of a victimize. however, the space was however young enough and with the bull marketplace starting in 2017, a thoroughly number of investors got caught up in the system. Related Reading | How Did Bitcoin’s “Big Week” Turn Out?
What followed was a stretched-out lawsuit against founder Satish Kumbhani and accomplice Glenn Arcaro. now with the casing coming to an end, the Department of Justice is set to auction off some of the seize cryptocurrencies to reimburse those who were affected by the victimize.

Selling The Crypto

On Tuesday, the U.S. Department of Justice released a statement revealing its course of legal action in reimbursing victims of the fraud. The department had initially submitted a concession alongside the U.S. Attorney ’ second Office for the Southern District of California, seeking assurance to liquidate about $ 56 million worth of crypto that had been seized in relation to the case. The request was granted by U.S. District Judge Todd W. Robinson, setting in motion the plan to sell and compensate the victims. This sum is the largest single crypto seizure from fraud by the United States and was recovered from Glenn Arcaro .
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Total crypto market cap now at $2.5 trillion | Source: Crypto Total Market Cap on

“ With submission of the court ’ mho interlocutory sale order, the government will begin the process of seeking to make whole victims of the BitConnect outline by selling the cryptocurrency and holding the proceeds in U.S. dollars, ” the instruction read.

Victims of the BitConnect fraud have been asked by the DOJ to submit their reimbursement claims at hypertext transfer protocol : // .

Sentencing The Defendant

The BitConnect victimize promised investors that their funds would be used for trading with the “ BitConnect Trading Bot ”. however, founder Kumbhani and accomplices had diverted the funds for personal consumption. All of the funds, over $ 2 billion, were transferred to wallet addresses of Kumbhani, Arcaro, other promoters, and nameless individuals .
Related Reading | Five Tools That Can Help Predict Bitcoin Market Top

The $ 56 million worth of crypto being sold off had been seized from Arcaro, who was known as the number 1 promoter of the Ponzi scheme. With approval from the defendant, the Department of Justice had seized and taken into detention the cryptocurrencies .
The case against Arcaro is about coming to an end. He is due to be sentenced on January 7th and faces a maximum possible sentence of 20 years for his engagement in the crime .
In May, five other promoters were named in a relate lawsuit filed by the SEC .

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