BitConnect Crypto Scam Victims Receive $17 Million

For anyone who thinks that getting their money back from a crypto scam is impossible, this story is worth reading. BitConnect, was the largest crypto scam when it finally crashed in 2018. The scale and the amount of money lost made crypto recovery a challenge for law enforcement, but fortunately, a San Diego Federal Judge has ordered $17 million be returned to 800 victims in 40 countries. 

This seems like welcome news, but then again, $17 million seems to fall short of the total $2.6 billion stolen by Glenn Arcaro and Satish Kumbhani, BitConnect founders. However, it should be considered that just $56 million has been liquidated thus far and the process is still ongoing. 

Although the crypto recovery process requires patience, in the case of BitConnect, it seems to pay off in the end and will continue to yield successes, thanks to improvements in crypto investigation methods. 

A “TextBook Crypto Scam”

Although many customers thought Bitconnet’s trading platform was legitimate, when BitConnect collapsed, the Department of Justice (DoJ) called it a “textbook crypto scam.” The platform was founded by Glenn Arcaro and Satish Kumbhani. 

They made extravagant claims to attract traders. For instance, they promised that their clients would earn 1% return daily. This may not sound like much, but add it up. A return of 30% after the first month isn’t just generous, it’s outrageous. Look at licensed investment funds, and you won’t find any legitimate trading opportunities that guarantee these kind of returns. 

Actually, no trading went on at all. Glenn Arcaro and Satish Kumbhani were simply funding client withdrawals with deposits, the way any Ponzi scheme works. In addition, they pocketed 15% to fund fancy properties and luxuries. They threw caution to the wind and didn’t keep any on the side in case there would be a sudden demand for withdrawals–usually an event that says “Game up” to Ponzi schemes. 

This crypto scam also hinged on a fake token. BitConnect’s BCC token was in reality not worth anything but became inflated in value driven up only by hype. Naturally the scammers urged customers to make withdrawal in BCC token, which meant that this Ponzi scheme didn’t have to make any real withdrawals at all–except in worthless BCC tokens, for more information crypto trace, cryptocurrency trace, fund recovery, Crypto Scam 

Before BitConnect’s actual collapse, however, there was a lot of suspicion. Crypto experts such as ethereum founder  Vitalik Buterin sounded the alarm that something was afoot. Regulators such as the British Registrar of Companies delisted Bitconnect and the state governments of North Caroline and Texas issued cease and desist orders against BitConnect for its misleading statements and lack of transparency. 

Have You Lost Money with BitConnect or Another Crypto Scam?

If you suspect that a platform or a broker you are using may be a crypto scam, it’s important to pay attention to these feelings of unease. Speak to experts who can clue you in on signs of bitcoin scams. If you feel the service is fraudulent, ask for a withdrawal. 

If they won’t allow you to close an account or make a withdrawal without paying a huge fee, or if they refuse to respond to you, it’s time to get some crypto recovery assistance. Crypto experts will consult with you, launch a full investigation and create a crypto report that can unmask fraudsters’ identities and give law enforcement valuable leads. Contact crypto experts right away and get started on the first steps toward successful crypto recovery.