US government seizes $56 million in crypto from BitConnect’s ‘number one promoter’

Illustration by James Bareham / The Verge

The US government has seized $56 million worth of cryptocurrency from an admitted participant in the BitConnect scam and intends to sell the coins and use the proceeds to reimburse victims. The Department of Justice says that it’s the largest recovery of cryptocurrency to date — and that it was willingly given up by Los Angeles resident Glenn Arcaro, who has called himself BitConnect’s “number one promoter.”

According to the Securities and Exchange Commission (SEC), BitConnect convinced people to invest a total of $2 billion by telling them that it had a bot capable of generating incredibly high rates of return from crypto trading. In other words, BitConnect sold itself as a way for people to easily invest in cryptocurrency and to make a...

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