Home Bitcoin NewsBitcoin Scam The US Justice Department is selling $56 million worth of crypto seized in massive bitcoin investment fraud case | Currency News | Financial and Business News

The US Justice Department is selling $56 million worth of crypto seized in massive bitcoin investment fraud case | Currency News | Financial and Business News

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Bitcoin.

  • The US Justice Department is selling $56 million worth of cryptocurrency seized from BitConnect’s top promoter.
  • The proceeds from the sale will be put toward paying back victims of the BitConnect scam. 
  • In 2017, BitConnect’s founder and its promoters swindled investors out of $2 billion. 

Victims of the biggest heist in the cryptocurrency world may soon get some retribution. 

That’s because the US Justice Department is selling $56 million worth of cryptocurrency it seized as part of its case against BitConnect, according to a Tuesday press release. The founder of BitConnect, a scam cryptocurrency, and its promoters swindled thousands of people out of $2 billion worth of bitcoin in 2017.

The scheme is the largest cryptocurrency fraud ever criminally charged, the Justice Department said in its statement. The proceeds from the sale will be used to help pay back victims of the scam. 

The crypto to be sold was seized from BitConnect’s top promoter, 44-year-old Glenn Arcaro, who pleaded guilty in federal criminal court for his role in the case. Insider previously reported that he and BitConnect founder Satish Kumbhani told investors the coin could get monthly returns as high as 40%. 

In September, the US Securities and Exchange Commission sued Kumbhani for raising $2 billion from investors in an offering not properly registered with regulators. In May, the SEC sued five BitConnect promoters who created video testimonials on YouTube and received commissions from it. Arcaro, for his part, received $24 million in referral comissions, Insider said previously. 

Experts have been advising investors to remain vigilant in the crypto world. As the popularity of cryptocurrencies rises, so does the number of scams. Insider reported in July one 77-year-old woman lost more than $12,000 in a bitcoin scam. She’s one of many who has been swindled out of money. 

More recently, the makers of the Squid Game coin named after the hit Netflix show made millions after investors caused the meme coin price to skyrocket. The scammers reaped the rewards before the crypto project was taken offline. 

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