Bitcoin theft: former BitConnect promoter admits guilt

Glenn Arcaro pleads guilty, will former Bitconnect (BCC) investors now get their money back?

Glenn Arcaro, the former BitConnect lead promoter in the US space, has pleaded guilty. Now he must pay back the $24 million he made through a Ponzi scheme to those he defrauded. This is according to a report issued by the United States Securities and Exchange Commission (SEC) on September 01. It discusses the cases of Satish Kumbanhi (founder) and Glenn Arcaro and Future Money Ltd.

Who is Glenn Arcaro?

Glenn Arcaro is a former director and principal of BCC promoters in the US. This company made approximately two billion dollars selling unregistered securities to investors. These “unregistered securities” are investments in BitConnect’s loan program. In simpler terms, they are the purchase of the in-house cryptocurrency BitConnect Coin (BCC). In doing so, the founders and promoters of this cryptocurrency drew their profits from the investments using the Ponzi scheme method.

What happened at BitConnect?

BitConnect, meanwhile, existed from 2016 to 2018, with a business model that saw users first convert their Bitcoins into BitConnect Coins. These were then supposedly invested cleverly and profitably. To this end, the company guaranteed its users returns of up to 40 percent per month by means of “volatility software” and “BitConnect Trading Bot”. This supposedly promising system attracted a large number of investors, making BitConnect one of the largest cryptocurrencies in the world in 2018.

However, the bubble burst as the promises failed to pay off as demand increased and the website soon became unavailable. Within a few days, the BCC price lost over 90 percent of its value. Several regulators from different nations (such as Australia, the UK, and the US) investigated the case and found the scandal. To this day, it is unclear whether the software or bot ever existed. Consequently, the U.S. Department of Justice is investigating an undisclosed number of individuals who had various relationships with the company. Their accusation is the unlawful sale of securities without proper authorization.

In total, the company made 325,000 BTC from its promoters. That was circa two billion US dollars at the time.

What will happen to Glenn Arcaro?

Glenn Arcaro, meanwhile, has confessed. He has admitted that the fraudulent marketing deliberately misled investors. He has admitted to earning 15 percent per investment in BitConnect’s loan program. In addition, through a hidden fund, he received shares in the entirety of investments made. According to his own statement, he earned approximately 24 million US dollars this way. He is now said to have receivedsion of the aid to the persons concerned.