The Ponzi Curse Continues – A former top official in the BitConnect scam admits wrongdoing in federal court in the Southern District of California. He faces a maximum sentence of 20 years in prison, in addition to particularly heavy financial penalties.
Glenn Arcaro and BitConnect: End of the road in court
On September 1, former BitConnect director and promoter Glenn Arcaro pleaded guilty in U.S. District Court for the Southern District of California to charges of conspiracy to commit wire fraud. The 44-year-old admits to the charges, in relation to his involvement in a scam that deceived investors by “fraudulently marketing” BitConnect’s token offering and presenting it as a particularly profitable investment.
Arcaro also admits to misleading investors by touting guaranteed profits and returns produced by the “BitConnect Trading Bot” and “Volatility Software,” which are generated by using users’ funds to trade cryptos. The Department of Justice (DoJ) release, however, states that in effect, BitConnect has set up a Ponzi scheme.
24 million dollars to be returned and 20 years in prison
Arcaro set up a pyramid scheme, the “BitConnect Referral Program”, made up of a vast network of promoters in North America. He earned about 15% per investment in the BitConnect loan program and received a share of all investments via a slush fund. His earnings are said to be $24 million, a haul he is ordered to repay.
The sentence will be handed down on November 15, 2021 before District Judge Todd W. Robinson. Arcaro faces a maximum sentence of “20 years in prison, $250,000 fine or 2 times the gross gain or loss of the offense, whichever is greater; forfeiture and restitution.”
Glenn Arcaro seems to have hit the wall of his Ponzi scheme. Does he still have a chance of reducing his sentence by reaching a settlement with the plaintiffs, notably the US SEC? The regulator had imposed significant financial penalties on 4 defendants in the scam he had promoted via testimonial videos.
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