by Fred Fuld III
One of the directors of BitConnect, Glenn Arcaro, has pleaded guilty to wire fraud conspiracy for his role in the BitConnect scam, according to the U.S. Department of Justice.
BitConnect went out of business in 2018. Prosecutors said that the company was “a textbook Ponzi scheme”. The DoJ said investors lost over $2 billion in the fraud.
Bitconnect was created in 2016 with the goal of allowing users to lend the value of the Bitconnect coin in return for interest payments.
The BitConnect coin, known as BCC, rose from a post ICO price of $0.17 to an all-time high of $463 in December 2017; it tanked to $0.40 as in March of 2019.