The founders of crypto asset lending platform BitConnect were indicted in a New York State court in September 2021 on fraud charges. The U.S. Department of Justice announced on November 16 that it would sell $56 million worth of crypto assets confiscated as a result of the lawsuit, and use the proceeds to help victims of fraud.
BitConnect was prosecuted for fraud on September 1, 2021, after it was revealed that the funds were actually being used for promotional activities, etc. Bitcoin promoter Glenn Arcaro pleaded guilty to the lawsuit.
According to the US judiciary, the court and the US judiciary have succeeded in acquiring $56 million worth of crypto assets from Akarro and others. The confiscated crypto assets are sold by the U.S. government and the proceeds go towards relieving victims of fraud. The U.S. Department of Justice has encouraged victims of fraud cases to visit the trial information disclosure page to gather relevant information.
In an announcement, the U.S. Department of Justice emphasized the seriousness of the BitConnect fraud case, saying that the BitConnect fraud scheme is the largest ever criminally charged. In addition, Akaro faces up to 20 years in prison and is expected to be sentenced on January 7, 2022. Related information can be found here.