The US Securities and Exchange Commission (SEC) obtained a judgment against Glenn Arcaro – the lead promoter of the alleged fraudulent scheme BitConnect. According to the regulator, he promoted it to retail investors in the States and used his company – Future Money Ltd. – to lure traders into the scam.
The SEC Is on The Hunt Again
The SEC published its latest intentions regarding BitConnect on its official website. There, the agency informed that The United States District Court for the Southern District of New York entered judgments against Glenn Arcaro (the top promoter of the cryptocurrency project).
It is worth noting that he has previously pleaded guilty to Conspiracy to Commit Wire Fraud for his connection with BitConnect – one of the most controversial digital asset schemes.
The SEC’s first complaint against Arcaro came at the beginning of September. Back then, the watchdog filed an action against the founder Satish Kumbhani and the top US promoter (Glenn Arcaro) and his affiliated company.
The Commission has alleged that all parties have scammed retail investors out of around $2 billion through “a global fraudulent and unregistered offering of investments into a program involving digital assets.”
Following the judgments against the accused, they were ordered to pay prejudgment interest, disgorgement, and a civil penalty in an amount determined by the court and confirmed by the SEC.
BitConnect’s Previous Saga with The SEC
The regulator has been on the hunt for BitConnect associates for quite some time. Back then, it filed a lawsuit against five individuals connected to the cryptocurrency project for promoting and selling unregistered securities. Namely, those were Trevon Brown (a.k.a. Trevon James), Craig Grant, Ryan Maasen, Michael Noble (a.k.a. Michael Crypto), and Joshua Jeppesen.
“We will seek to hold accountable those who illegally profit by capitalizing on the public’s interest in digital assets,” the SEC stated at the time.
A few months later, the agency reached a settlement with three BitConnect promoters who had to pay over $12 million in bitcoin and fiat currencies. Those individuals were Joshua Jeppesen, Michael Noble, and Laura Mascola. According to the agreement, the first was charged with around $3 million in disgorgement and prejudgment interest, 190 Bitcoin in disgorgement, and a $150,000 penalty. He also had to provide access to his BTC wallet.
Noble’s financial penalty was not revealed, while Mascola’s punishment included more than $500,000 in disgorgement and prejudgment interest.