• The United States District Court for the Southern District of California has ordered over $17 million in restitution to be distributed to nearly 800 victims from over 40 different countries due to their investment losses in BitConnect.
• The US Department of Justice stated that BitConnect operated a „textbook Ponzi scheme“ as it paid earlier BitConnect investors with money from later investors.
• The restitution is a result of the combined efforts of the Department of Justice, the Federal Trade Commission, the Securities and Exchange Commission, and state attorneys general to bring justice to the victims of the Ponzi scheme.
The United States District Court for the Southern District of California has recently issued an order of restitution of over $17 million to nearly 800 victims of the notorious BitConnect Ponzi scheme. The scheme, which defrauded thousands of investors across the world, was discovered and accused of being a „textbook Ponzi scheme“ by the US Department of Justice (DOJ) in 2020.
BitConnect was first established in 2016 as a crypto-currency investment platform that promised investors high returns with low risk. Investors were promised that their investments would double in value within a matter of months, but in reality it was nothing more than a Ponzi scheme. The platform operated by paying earlier BitConnect investors with money from later investors. As a result, investors were left with nothing and suffered great losses.
The restitution order is a result of the combined efforts of the Department of Justice, the Federal Trade Commission, the Securities and Exchange Commission, and state attorneys general to bring justice to the victims of the Ponzi scheme. Over 800 victims from over 40 different countries will receive restitution from the $17 million fund. They will receive the money as soon as the funds become available.
The Department of Justice is also working to recover and distribute the remaining funds that were unlawfully obtained by the BitConnect operators. The funds will be distributed to victims who were defrauded by the Ponzi scheme. The Department of Justice and its partners are dedicated to seeking justice for victims of fraud and will continue to work towards recovering the remaining funds.