USD 56 mln in seized crypto sold as to compensate victims of fraud

Thursday 18 November 2021 09:27 CET | News

US-based authorities have planned to liquidate approximately USD 56 million in fraud proceeds seized from BitConnect, a cryptocurrency, who consented to the seizure, according to the DOJ

This liquidation is the largest single recovery of a cryptocurrency fraud by the United States to date. According to court documents, on 1 September 2021, a trial for participating in a massive conspiracy to defraud BitConnect investors in the United States and abroad, in which investors were fraudulently induced to invest over USD 2 billion was concluded. The BitConnect scheme is the largest cryptocurrency fraud scheme ever charged criminally, the DOJ states.

With entry of the court’s interlocutory sale order, the government will begin the process of seeking to make whole victims of the BitConnect scheme by selling the cryptocurrency and holding the proceeds in US dollars. 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. 

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Keywords: online fraud, cryptocurrency, digital wallet
Categories: Securing Transactions | Digital Identity, Security & Online Fraud
Countries: United States
This article is part of category

Securing Transactions