According to Coindesk, the price was around $49,400 per coin, while Ethereum and Dogecoin were trading at around $3,800 and 29 cents per coin, respectively.
Massive Crypto Fraud Case: BitConnect Ponzi Scheme
A man who pleaded guilty to participating in what prosecutors described as a “classic Ponzi scheme” admitted to defrauding cryptocurrency investors worldwide of more than $2 billion.
According to the San Diego Union-Tribune, prosecutors allege that Glenn Arcaro of Los Angeles sat atop the North American branch of the pyramid investment scheme BitConnect.
Arcaro pleaded guilty to conspiracy to commit wire fraud in federal court and admitted in his plea agreement to earning “no less than $24 million” from the BitConnect fraud conspiracy, the newspaper reported.
Arcaro must repay investors as part of his plea agreement. He faces a maximum sentence of 20 years in prison and is scheduled to be sentenced on Nov. 15.
Largest Cryptocurrency Fraud Ever Prosecuted
The BitConnect scheme is believed to be the largest cryptocurrency fraud ever prosecuted criminally, according to the U.S. Attorney’s Office.
“In reality, BitConnect operated a textbook Ponzi scheme by compensating earlier BitConnect investors with funds raised from subsequent investors,” prosecutors stated.
Key Details of the BitConnect Fraud Case
| Detail | Information |
|---|---|
| Defendant | Glenn Arcaro |
| Location | Los Angeles, USA |
| Scheme Name | BitConnect |
| Fraud Amount | Over $2 billion |
| Personal Earnings | At least $24 million |
| Crime | Conspiracy to commit wire fraud |
| Maximum Sentence | 20 years |
| Sentencing Date | November 15 |
| Prosecution Authority | U.S. Attorney’s Office |
El Salvador’s Bitcoin Legal Tender Controversy
In other cryptocurrency news, according to Reuters, the majority of Salvadorans surveyed oppose the government’s decision to adopt bitcoin as legal tender.
According to a poll conducted by Central American University, many people are unfamiliar with how to use the digital currency and are skeptical of the project.
At least 67.9% of 1,281 respondents indicated that they are opposed to or strongly opposed to the use of Bitcoin as legal tender.
On September 7, the cryptocurrency will become legal tender in El Salvador.
Additionally, the survey revealed that the majority of Salvadorans believe the wealthy, foreign investors, the government, and business leaders will reap the greatest benefits.
FAQs
Q1: Why was Bitcoin trading lower on Friday morning?
Market fluctuations, investor sentiment, and profit-taking activities likely contributed to Bitcoin’s 1.4% drop.
Q2: What was the BitConnect Ponzi scheme?
BitConnect was a fraudulent investment platform that promised high returns and used funds from new investors to pay earlier ones.
Q3: Who is Glenn Arcaro?
Glenn Arcaro was BitConnect’s North American promoter who pleaded guilty to wire fraud and earned over $24 million through the scheme.
Q4: Why do Salvadorans oppose Bitcoin as legal tender?
Most Salvadorans are unfamiliar with using digital currencies and fear potential economic instability.
Wrapping Up
The crypto world continues to experience volatility — from Bitcoin’s market fluctuations to fraudulent schemes like BitConnect. Meanwhile, El Salvador’s bold move to make Bitcoin legal tender reflects the growing but controversial influence of cryptocurrencies worldwide.
