Users of the BitConnect cryptocurrency pyramid will be refunded part of the lost funds

According to the ruling of the Federal District Court of San Diego, 800 investors from more than 40 countries who suffered from the BitConnect crypto-pyramid scheme will receive compensation in excess of $ 17 million.

As stated on the website of the US Department of Justice, 800 victims of the BitConnect cryptocurrency scheme will be able to return their investments and compensate for their losses. In a statement, the department noted that BitConnect positioned itself as a cryptocurrency lending platform, promoting its Bitconnect Trading Bot and Volatility Software tools. The organizers of the scheme promised investors a daily profit of 1% of the invested funds or 3700% per annum.

In September 2021, the chief promoter of BitConnect in the United States, Glenn Arcaro, pleaded guilty to conspiracy to commit wire fraud. on February 25, 2022, BitConnect founder Satish Kumble was also charged with multibillion-dollar fraud. Kumbhani is also being investigated by the Indian police, but his whereabouts are unknown.

Law enforcement agencies found out that the money that came to BitConnect was paid to previous investors. In addition, 15% of the funds raised were directed directly to a special-purpose reserve fund, which was used for the needs of the founder and main promoters of BitConnect.

As a reminder, in November 2021, the US Department of Justice managed to sell crypto assets confiscated from the BitConnect pyramid promoter for $ 56 million. After that, the agency began searching for victims who lost money in this project.