DOJ Gets Approval to Sell $56M in Crypto to Compensate Victims of BitConnect
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The US Department of Justice (DOJ) announced it has received approval from a US federal judge to sell $56 million in cryptocurrency proceeds seized from BitConnect. According to a press release, the liquidation is the largest single recovery of a cryptocurrency fraud by the US so far. The regulator plans to compensate victims of the BitConnect scheme by selling the cryptocurrency and holding the proceeds in US dollars.

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"The government will maintain custody of the seized proceeds in cryptocurrency wallets and intends to use these funds to provide restitution to the victims pursuant to a future restitution order by the court at sentencing," the DOJ said.

BitConnect Promoters Pay Over $12M to Reach Settlement with SEC

In September, Glenn Arcaro, 44, of Los Angeles, pleaded guilty to participating in the BitConnect scheme in the US and abroad. The BitConnect scheme is the largest cryptocurrency fraud scheme ever charged criminally. The US Securities and Exchange Commission alleged that BitConnect defrauded at least US investors a total of $2 billion.

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