The U.S to Sell Seized Bitcoin Worth $56 Million

• The U.S. Justice Department is set to sell $56 million worth of cryptocurrency seized from Ponzi scheme BitConnect

• The Bitconnect fraud reportedly scammed thousands of US residents and people abroad of more than $2 billion in bitcoin

• Earlier in September this year, the Securities and Exchange Commission sued BitConnect founder and lead promoter Satish Kumbhani and Glenn Arcaro

The U.S Justice Department is set to sell off $56 million worth of cryptocurrency that was seized from a Ponzi scheme through lending program BitConnect.

Authorities disclosed on Tuesday that the liquidation of the cryptocurrencies comes after the largest recovery from a cryptocurrency fraud in the United States to date.

The proceeds of the sale will be used to reimburse the victims of the Bitconnect fraud, the justice department has disclosed.

Victims of that fraud have been urged to visit a website to submit claims for reimbursement after the sale is completed.

The Bitconnect scam which happened between January 2017 and January 2018 is alleged to have swindled thousands of people out of more than $2 million in Bitcoin.

The scammers convinced investors by offering them up to 40% yield on investment monthly which was claimed will be generated by BitConnect’s trading bot.

The Securities and Exchange Commission, however, disclosed that these claims were a sham in a lawsuit which was filed against the company’s founder and promoter Satish Kumbhani and Glenn Arcaro in September.

Read also: Nigeria’s Bitcoin P2P Trading Volume Drops By 43% as CBN Cracks Down

Authorities said the scheme is believed to be the largest cryptocurrency fraud ever prosecuted.

The cryptocurrency set to be sold was seized from 20 digital wallets controlled by the promoter of the show, Arcaro.

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