Victims of BitConnect will be Compensated for their Losses
Due to a multibillion-dollar fraud, 2021 has proven to be a disaster for 800 victims from more than 40 countries. However, some good news for the victims: the US Department of Justice has declared to compensate BitConnect scam victims.
The victims will be repaid over $17 million. The department’s decision is currently being praised worldwide. However, this is not BitConnect’s first scam; the company defrauded at least 4,500 people from 95 countries in 2018.
When was the occurrence first noticed?
The fraud was exposed on September 16, 2021 when BitConnect founder Kumbani and promoter Glen Arcado were convicted of wire fraud . The conspirators stole at least $56 million from the victims. The fraud was considered the largest fraud exposed by the United States.
Insiders claim that investors were duped over BitConnect’s “Lending Program.” Furthermore, it was claimed that the conspirators used the money they stole from the victims to fund a Ponzi scheme.
In 2016, BitConnect, a platform that allows individuals to lend their cryptocurrencies to needy businesses in the hopes of receiving huge returns, was launched.
However, lenders had to convert their bitcoin into BitConnect currencies to invest. Additionally, consumers could convert their gains into dollars or bitcoins.
Satish Kumbani founded the business, which was booming in 2017. However, in 2018, after the collapse of its well-known Ponzi scheme, the company’s reputation was severely damaged.
Debangshu is a content writer specializing in the Crypto and DeFi beats. Moreover, he holds 3 years of writing experience in technical niches. He has produced content for a wide range of publications and news outlets, ranging from cryptocurrency-oriented websites to corporate websites.