01-13-2023 icon

800 Individuals Affected by the Huge Bitconnect Embezzlement to Collect $17M Compensation

By Lucy Adegbe

A number of digital currency embezzlement preys of the Bitconnect venture scheme are scheduled to receive relief from the billions of dollar attack following a legal instruction that they partake in a 17 million dollar compensation.

The US south California region court instructed the relief to cover for the huge fraud on Thursday, as noted in a publication by the Justice Unit on the same day.

An estimated 800 impacted individuals of the fraudulent activities from across 40 nations are entitled to get a piece of the $17 million relief.

According to comments from the Justice Unit, Bitconnect was a deceitful digital currency loan protocol that authorized patented technical know-how, inclusive of the Bitconnect exchange bot and variability software.

It claimed investors would earn a daily compounding return of 1% or 3,700% in a year.

Investors were scheduled to exchange their bitcoin assets for Bitconnect native tokens, which would be loaned to other parties with attached interest.

Nonetheless, the whole activity came to ruin as it operated as a pyramid scheme. The first batch of investors received a payout from the investments of new participants, the Justice Unit noted.

Bitconnect suspected owner Satish Kumbhani was accused by the Justice Unit, following the protocol’s shutdown in 2018, barely two years after it commenced operations. Currently, his location is unknown. 

The platform embezzled an estimated $2.4 billion from more than 4,000 individuals in 95 nations.