The US 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 financial 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.
Glenn Arcaro lured victims for investment through the Future Money website.
He was the lead national promoter of the scheme in the United States and lured victims for investment through the Future Money website. He has already pled guilty to other BitConnect-related activities, including charges of conspiracy to commit wire fraud. BitConnect was one of the largest cryptocurrency scams that were estimated to have duped investors of $2 billion during the 2017 ICO peak. According to the SEC, Arcaro served as the US national promoter of BitConnect between August 2017 to January 2018. He promoted BitConnect to retail investors and prospective investors and communicated information and instructions from the scam company to other promoters in the country.
The judgment requires Arcaro and Future Money to pay disgorgement with interests.
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 of certain marketing and sales programs and also cannot participate directly or indirectly in digital asset securities offerings. The judgment also requires Arcaro and his company to pay disgorgement with interests and civil penalties, but the amount will be decided later. The US regulator also induced BitConnect founder Satish Kumbhani and settled with other promoters of the scheme in the country as well.