SAN DIEGO (AP) — A Los Angeles man pleaded responsible Wednesday to taking part in what prosecutors known as a “textbook Ponzi scheme” that defrauded cryptocurrency traders worldwide of greater than $2 billion.
Prosecutors stated Glenn Arcaro, 44, sat atop the North American department of the pyramid funding scheme BitConnect, the San Diego Union-Tribune reported.
Arcaro, who pleaded responsible in U.S. District Court docket to conspiracy to commit wire fraud, admitted in his plea settlement to incomes “a minimum of $24 million from the BitConnect fraud conspiracy,” the newspaper stated.
As a part of his plea, Arcaro should pay again that cash to traders. He faces as much as 20 years in jail when he is sentenced Nov. 15.
“The BitConnect scheme is believed to be the biggest cryptocurrency fraud ever charged criminally,” the U.S. Legal professional’s Workplace stated in a press release.
Arcaro’s plea got here the identical day that the U.S. Securities and Trade Fee filed a civil grievance towards BitConnect, the Union-Tribune stated.
In response to prosecutors, Arcaro and his co-conspirators claimed that BitConnect used a proprietary know-how that was capable of generate big earnings by utilizing traders’ cash to commerce on the volatility of cryptocurrency trade markets.
“In fact, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect traders with cash from later traders,” prosecutors stated.
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