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Scams are Hurting Adoption

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@cryptictruth
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The US government has seized $56 million worth of cryptocurrency from an admitted participant in a BitConnect scam. For those that don't know, on Sept. 1, Glenn Arcaro, 44, of Los Angeles, pleaded guilty to participating in a massive conspiracy to defraud BitConnect investors in the United States and abroad, in which investors were fraudulently induced to invest over $2 billion. The BitConnect scheme is the largest cryptocurrency fraud scheme ever charged criminally. Press Release Number: 21-1133

The government now intends to sell the coins and use the proceeds to reimburse victims. The DOJ 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.”

They say that any PR is good PR, but I disagree. What really happened was 'BitConnect' aka the scammers convinced people to invest a total of $2 billion by telling them that it had a bot capable that would return crazy gains. However, the money from new investors to pay old ones which is a scam as old as time. Arcaro pleaded guilty to participating in both parts of the scam and earned approx. $24 million by his participation. These action totally undermine the legitimacy of the crypto sphere and as members of this community we need to do everything in our power to protect our personal and community integrity if we want full adoption. We have been fight a negative stereotype for years and if we keep have cases like this the public will support unnecessary regulation and suppression that could jeopardize our future.

The law enforcement arm of the US Postal Service will be helping convert the crypto to fiat currency. The government has set up a website for victims who are looking for compensation after the court sentences Arcaro in January 2022.

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