The Securities and Exchange Commission (SEC) has obtained a judgment against Glenn Arcaro, the lead promoter of massive crypto scam BitConnect, and his company, Future Money Ltd, the regulator announced on Thursday.
The judgment came after Arcaro and his company were indicted by the SEC in September for their role in promoting the lending programs of BitConnect. He was the lead national promoter of the scheme in the United States and lured victims to invest through the Future Money website.
He has already pled guilty to other BitConnect-related activities, including charges of conspiracy to commit wire fraud.
A Major Crypto Scam
BitConnect was one of the largest cryptocurrency scams that was estimated to have duped investors of $2 billion during the 2017 initial coin offering (ICO ) peak.
According to the SEC, Arcaro served as the US national promoter of BitConnect between August 2017 to January 2018. He promoted the fraudulent digital asset scheme to retail investors and prospective investors, and he communicated information and instructions from Bitcommect to other promoters in the country.
Both Arcaro and his company, Future Money consented to the entry judgment to which they are permanently enjoined from violating the charged provisions. Further, he cannot participate in the offering, operating and promoting certain marketing and sales programs, and he cannot participate directly or indirectly in digital asset securities offerings.
Moreover, the judgment requires Arcaro and Future Money to pay disgorgement with interests, along with civil penalties, but the amount will be decided at a later stage.
Apart from Arcaro, the US regulator induced BitConnect Founder, Satish Kumbhani and settled with other promoters of the scheme in the country as well. Last month, the US authorities announced that they will start selling $56 million worth of cryptocurrencies seized in the investigation against BitConnect.
