The project was one of the biggest crypto Ponzi schemes of all time, and had promised investors unrealistic monthly returns of 40%.
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A court in California has ordered $17 million in restitution to be paid to 800 victims who lost money in BitConnect.
The project was one of the biggest crypto Ponzi schemes of all time, and had promised investors unrealistic monthly returns of 40%.
Overall, thousands of investors were defrauded worldwide to the tune of at least $2.4 billion.
Given the scale of the damage that BitConnect caused, it's actually unclear why just 800 people will receive compensation — and how they'll be selected.
However, we do know that the funds are set to be distributed to victims in over 40 countries.
The U.S. Justice Department has given an update after the top U.S-based promoter for BitConnect pleaded guilty to conspiracy to commit wire fraud. Glenn Arcaro admitted that he misled investors — and in a "textbook Ponzi scheme," paid earlier investors with proceeds from those who joined later.
According to Arcaro's plea, 15% of the money that was invested into BitConnect also "went directly into a slush fund to be used for the benefit of its owner and promoters."
Proceedings remain active — many years after BitConnect spectacularly collapsed. The project's founder Satish Kumbhani has been indicted by a grand jury in California and charged with orchestrating the Ponzi scheme.
