SAN DIEGO (AP) — A Los Angeles man pleaded responsible Wednesday to taking part in what prosecutors known as a “textbook Ponzi scheme” that defrauded cryptocurrency traders worldwide of greater than $2 billion.
Prosecutors mentioned Glenn Arcaro, 44, sat atop the North American department of the pyramid funding scheme BitConnect, the San Diego Union-Tribune reported.
Arcaro, who pleaded responsible in U.S. District Court docket to conspiracy to commit wire fraud, admitted in his plea settlement to incomes “at least $24 million from the BitConnect fraud conspiracy,” the newspaper mentioned.
As a part of his plea, Arcaro should pay again that cash to traders. He faces as much as 20 years in jail when he’s sentenced Nov. 15.
“The BitConnect scheme is believed to be the most important cryptocurrency fraud ever charged criminally,” the U.S. Legal professional’s Workplace mentioned in a press release.
Arcaro’s plea got here the identical day that the U.S. Securities and Trade Fee filed a civil grievance in opposition to BitConnect, the Union-Tribune mentioned.
In accordance with prosecutors, Arcaro and his co-conspirators claimed that BitConnect used a proprietary expertise that was in a position to generate large earnings by utilizing traders’ cash to commerce on the volatility of cryptocurrency change markets.