The Department of Justice of the United States is looking to sell off the 56 million USD worth of crypto seized after the BitConnect scam.
This came out in a press release from the Department of Justice where it was stated that the proceeds of the crypto sale will be used to compensate the victims of the scam where over 2 billion USD was scooped from investors in the United States and across the globe.
The department also noted that liquidating the cryptocurrency will make it the largest single recovery for a crypto scam in the United States up till now. More importantly, it was reported that the Office of the Attorney of the Sothern District of California and the Department of Justice was authorized by a federal judge to go ahead with the liquidation.
Crypto Seized from the Wallets of BitConnect Promoter
The crypto listed for liquidation was seized from the wallets of the promoter of the exchange, Glen Arcaro. The report had it that Arcaro has pleaded guilty for his involvement in the scam since he was apprehended. The assets seized were gathered from the 20 wallets in Arcaro’s custody which has gotten more than $24 million in commissions.
After pleading guilty, Glen Arcaro was charged and is awaiting his sentence on the 7th of January, where he can face up to 10 years in jail.
The scam which happened at the height of the bull run in the BTC market in 2017 saw has many victims after the firm laid a trap of 40% return in a month for investors. The investment plan was laid out to generate liquidity for the purported volatility trading robot developed by BitConnect.
Later in September, the SEC filed a lawsuit against the founders of BitConnect for running an unincorporated firm that has four companies running in the United Kingdom. As it stands now, the whole firms are either dissolved or defunct.
BitConnect Non-Fungible Token
While the case is going on, the BitConnect NFT is under auction at 0.55 ETH on the popular NFT platform in the crypto space, OpenSea. The meme was generated from a picture of a reputable investor on the BitConnect platform, Carlos Matos singing the praise of the platform way before the project fell. One can visit the NFT named ‘Bitconeeeeect’ virtually on cryptotale.art.