Founder of cryptocurrency company BitConnect charged in $2.4-billion fraud
LA TimesAn American flag flies outside the Department of Justice in Washington, D.C. The founder of a cryptocurrency company was charged by a San Diego federal grand jury Friday in a wide-ranging indictment alleging he defrauded global investors out of more than $2.4 billion in what prosecutors said is believed to be the largest swindle of its kind ever criminally charged. Investors would then “lend” their BCC tokens to Bitconnect, which would purportedly invest the proceeds using proprietary technology known as the Trading Bot and Volatility Software. Glenn Arcaro, described by prosecutors as “one of the most prolific and successful” of the bunch overseeing the United States, also formed his own cryptocurrency education course called Future Money. The fallout was swift around the globe, with South Korean investors “freaking out” and one promoter warning Kumbhani that people were talking in chat rooms about committing suicide, according to the indictment.
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